2Cash receipt is defined as a written document that is normally produced by the company every time it receives money for good or services. When a purchase transaction is created, a cash receipt is processed to accompany the purchase and a receipt becomes a record that allocates the sale of the product upon cash payment. Primary control of cash receipts includes separating cash handling responsibilities among different individuals, therefore establishing a segregation of duties. When you successfully establish separation of duties and responsibilities, a single individual does not have control over the entire cash process. The existence of cash accountability ensures that cash has been properly been accounted for. Segregation of duties help mitigate and/or avoid lost or stolen cash receipts, irregularities going unchecked, inaccuracy of cash application and ultimately holding people and process accountable. Ethics and Professionalism: AttitudesJohn approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month, Johnsubmits a list of all accounts and amounts to be charged and a check is written to him for the total amount. John is the only person ever to tallythe fund. Explain the internal control weakness and describe how internal controls can be improved upon. What questions would you ask tofind out additional information regarding this internal control situation? 3Some of the weaknesses associated with internal controls include; insufficient records/documentation as well as not having a clear defined business practice. Another point of contention would be lack of due processes, dual control, conflict of interest and segregation of duties. In order to improve the internal control mechanism, there is an immediate need to set apart or segregate duties, secondly, limit access to create dual control and transparency, and lastly you could add a third individual to review the financial statements--This way you create checks and balances. Finally, allow employees to take vacations and keep in mind the same key components when cross training back up help for the team.