{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 7 - receipts Identify the internal control...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7 BE7-3 The internal control procedures in Phillips Company make the following provisions. Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. (segregation of duty) (b) Each month the assets on hand are compared to the accounting records by an internal auditor. (independent internal verification) (c) A prenumbered shipping document is prepared for each shipment of goods to customers. (documentation procedures) BE7-4 Aldstadt Company has the following internal control procedures over cash
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: receipts. Identify the internal control principle that is applicable to each procedure. (a) All over-the-counter receipts are registered on cash registers. (physical, mechanical, and electronic controls) (b)All cashiers are bonded. (other control or human resources) (c) Daily cash counts are made by cashier department supervisors. (establishment of responsibility) (d)The duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals. (segregation of duty) (e) Only cashiers may operate cash registers. (establishment of responsibility)...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern