XYZ Company has considerable cash collections on a regular basis. The cashier receives the cash, records it and then banks it at the end of each day. Since a single person is responsible for access to cash, the financial director is concerned that fraud and error may occur in cash handling and recording. Suggest the financial director several internal controls to prevent such errors or misappropriations? (at least 3 controls).
XYZ Company has considerable cash collections on a regular basis. The cashier receives the cash, records it and then banks it at the end of each day. Since a single person is responsible for access to cash, the financial director is concerned that fraud and error may occur in cash handling and recording. Suggest the financial director several internal controls to prevent such errors or misappropriations? (at least 3 controls).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![XYZ Company has considerable cash collections on a regular basis. The cashier receives
the cash, records it and then banks it at the end of each day. Since a single person is
responsible for access to cash, the financial director is concerned that fraud and error may
occur in cash handling and recording.
Suggest the financial director several internal controls to prevent such errors or
misappropriations? (at least 3 controls).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6cf6ddae-9ac7-47df-aae2-c8ccea72b238%2Fb8b92d88-7378-487b-9469-6977b400ea66%2Fn6gv5gb_processed.png&w=3840&q=75)
Transcribed Image Text:XYZ Company has considerable cash collections on a regular basis. The cashier receives
the cash, records it and then banks it at the end of each day. Since a single person is
responsible for access to cash, the financial director is concerned that fraud and error may
occur in cash handling and recording.
Suggest the financial director several internal controls to prevent such errors or
misappropriations? (at least 3 controls).
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