FI504 Week 8: (TCO D) Your friend James has hired you to evaluate the following internal control
FI504 / Acct504 Week 8 Finals Question:
(TCO D) Your friend James has hired you to evaluate the following internal control procedures. a) Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which principle relates to each of the internal controls. b) For the weaknesses, you also need to state a recommendation for improvement. 1. Everyone has access to the petty cash fund. 2. Cash register codes are assigned to each cashier. 3. The treasurer is the only one allowed to sign checks. 4. Supervisors count cash receipts daily. 5. The treasurer approves of the purchases and makes the payment because he is familiar with the purchases.