Which of the following procedures would weaken controlover cash receipts that arrive through the mail?Multiple ChoiceAfter the mail is opened, a list (in triplicate) of themoney received is prepared with a record of thesender's name, the amount, and an explanation ofwhy the money is sent.The cashier deposits the money in the bank and therecordkeeper records the amounts received in theaccounting records.For safety, only one person should open the mail,and that person should deposit the cash received inthe bank at the end of each month.The bank reconciliation is prepared by a person whodoes not handle cash or record cash receipts.The employees handling the cash receipts arebonded.

Solution Introduction Internal control Internal control is the policies and systems that are put in…

Answered: Which of the following procedures would…

Business

Accounting

Which of the following procedures would weaken control over cash receipts that arrive through the mail?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 0) Which scheme is considered to be skimming? A. Unrecorded sales. B. Understated…

A: Skimming entails engaging in illegal activities in order to generate additional cash, as well as…

Q: Consider how an organization must manage cash and receivables. Which of the two is the most…

A: How an organization must manage cash and receivables? Cash and receivables management is important…

Q: What are the steps in approach to internal control over cash receipts that utilizes separation of…

A: Cash receipts are the payment that customer receives from the sales made. The Lock-box system is…

Q: Which of the following control activities would best protect against the preparation ofimproper or…

A: Cash Budget: This budget gives an estimation of all the cash inflows and outflows of a business for…

Q: Which of the following fraudulent activities most likely could be perpetrated due to the lack of…

A: The auditor Is responsible for forming an opinion on the financial statement and the main reason for…

Q: Why is it generally more difficult to detect skimming than cash larceny?

A: Cash larceny and skimming are techniques for making embezzlement of fraud in cash.

Q: How does cash control deficiencies affect the development of audit procedures for cash?

A: Auditor: An auditor is a person or a group of people who is responsible for conducting an audit of…

Q: What does it mean to say that internal control has limitations and what are these limitations?

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Q: separation of duties

A: Separation of duty is the internal conttro process by which the company avoids the fraud and…

Q: What are some effective procedures for handling petty cash

A: The expression 'petty cash' alludes to a reserve of money set aside to pay little, day-to-day office…

Q: Can you explain why the uncontrolled risks are risks based in the problem . For instance how is…

A: (Inventory Control Clerk)↓Identify items that need to be ordered↓Print and send purchase…

Q: What type of internal controls would ensure proper classification of cash equivalents and how would…

A: Cash equivalents represent the current assets which are highly liquid. These are usually less risky…

Q: Answer the following questions to ponder: 1. What is the purpose of internal controls? 2. What…

A: An internal control is a plan of organisation for your business. It co-ordinates all systems used in…

Q: What controls can be used: a) to make sure cash accounts are accurate b) to make sure cash…

A: Control is a very important function of all types of organization. It helps in safeguarding the…

Q: What purpose do multilevel security controls serve in an organisation with combined purchases and…

A: Cash Disbursement System: The cash disbursement system carries out the responsibility of processing…

Q: in testing controls over cash disbursements, an auditor most likely would determine that the person…

A: In testing controls over cash disbursements, an auditor would most likely look for evidence that the…

Question

Which of the following procedures would weaken control
over cash receipts that arrive through the mail?
Multiple Choice
After the mail is opened, a list (in triplicate) of the
money received is prepared with a record of the
sender's name, the amount, and an explanation of
why the money is sent.
The cashier deposits the money in the bank and the
recordkeeper records the amounts received in the
accounting records.
For safety, only one person should open the mail,
and that person should deposit the cash received in
the bank at the end of each month.
The bank reconciliation is prepared by a person who
does not handle cash or record cash receipts.
The employees handling the cash receipts are
bonded.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

a. Identify the internal control weaknesses in the cash receipts process b. For each weakness, describe the associated risks c. For each weakness, provide a possible control activity
Define Petty Cash.
The primary form of prevention for most types of cash theft is: a. Creating checks and balances for handling the deposit b. Separation of duties in the receipt of cash c. The daily comparison of the receipted deposit slips to the organization’s records d. Vertical ratio analysis of sales accounts
What is a appropriate control procedures that would have prevented or detected the theft of cash in a business.
Which of the following statements are true regarding the control of cash receipts and cash payments? One key to controlling cash payments is to require that no expenditures be made by check; instead, all expenditures should be made from petty cash.
In testing controls over cash disbursements, an auditor most likely would determine that the person who signs the check also: A. Approves the voucher for payment. C B. C. D. Stamps, perforates or otherwise cancels supporting documents. Returns the checks to accounts payable. Is denied access to the supporting documents.
Assess the following statement as true or false. Enter T for true or F for false. 1. 2. 3. 4. Bank reconciliation is one of documentation procedure control. A cash budget contributes to more effective internal control. of segregation of duties. 5. to apply. Allow only one check signer has access to cash recording is an example The assumption of inventory method (i.e. FIFO etc.) may not match the physical flow of goods. Technology has make the perpetual inventory more popular and easier
As part of a strong internal control system, which of the following accounting duties needsto be separated from cash handling?a. Record keepingb. Filingc. Transaction approvald. Both a and c need to be separated from cash handling.
Internal controls associated with the purchases and cash disbursements cycle include: A Separation of duties. B Adequate documentation. C Both separation of duties and adequate documentation. D Neither separation of duties nor adequate documentation.