The following are deficiencies in internal controls over cash. a. When the cashier isn't available, Amy prepares both the deposit and opens the mail. b. The mail clerk may not prepare remittance advice for the A/R department if a customer does not submit a one with payment. c. Sometimes, the treasurer's department does not stop the supporting documents for cash disbursements. d. John handles both the customer correspondence concerning monthly statements and making the bank deposits. e. Mike handles incoming mail and also prepares bank reconciliations; however, the bank reconciliations are not done in a timely manner. For each deficiency: Determine what applicable audit procedure(s) should be conducted to identify whether any material misstatements exist Explain why you think this procedure is best for this situation. Consider each deficiency independently of the others. While each deficiency presents potential issues, identify two that stand out as the worse with your professional knowledge. Explain your rationale. How would you implement a change to improve those deficiencies? plz solve each deficiency according to the question a to e
The following are deficiencies in internal controls over cash. a. When the cashier isn't available, Amy prepares both the deposit and opens the mail. b. The mail clerk may not prepare remittance advice for the A/R department if a customer does not submit a one with payment. c. Sometimes, the treasurer's department does not stop the supporting documents for cash disbursements. d. John handles both the customer correspondence concerning monthly statements and making the bank deposits. e. Mike handles incoming mail and also prepares bank reconciliations; however, the bank reconciliations are not done in a timely manner. For each deficiency: Determine what applicable audit procedure(s) should be conducted to identify whether any material misstatements exist Explain why you think this procedure is best for this situation. Consider each deficiency independently of the others. While each deficiency presents potential issues, identify two that stand out as the worse with your professional knowledge. Explain your rationale. How would you implement a change to improve those deficiencies? plz solve each deficiency according to the question a to e
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are deficiencies in internal controls over cash.
a. When the cashier isn't available, Amy prepares both the deposit and opens the mail.
b. The mail clerk may not prepare remittance advice for the A/R department if a customer does not submit a one with payment.
c. Sometimes, the treasurer's department does not stop the supporting documents for cash disbursements.
d. John handles both the customer correspondence concerning monthly statements and making the bank deposits.
e. Mike handles incoming mail and also prepares bank reconciliations; however, the bank reconciliations are not done in a timely manner.
For each deficiency:
Determine what applicable audit procedure (s) should be conducted to identify whether any material misstatements exist
Explain why you think this procedure is best for this situation.
Consider each deficiency independently of the others. While each deficiency presents potential issues, identify two that stand out as the worse with your professional knowledge. Explain your rationale.
How would you implement a change to improve those deficiencies?
plz solve each deficiency according to the question a to e
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