Problem

Warren/Reeve/Duhac

The following procedures were recently installed by Rasberry Creek Company:

a.) After neccessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payavle clerk for filing.

b.) The accounts payable clerk prepares a voucher for each disbursement the voucher along with the supporting documentation is forwarded to the treasurers office for approval.

c.) Along with petty cash expense receipts for postage, office supplies, etc., several post dated employee checks are in the petty cash fund .

d.) At the end of each day, cash register clerks are required to use their own funds to make up any cash shortages in their registers.

e.) At the end of each day, all cash receipts are placed in the bank's nigh depository.

f.) At the end of each day , an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit reciept obtained from the bank.

g.) ALl mail is openeed by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts recievable clerk for recording in the accounts.

h.) The bank reconcliation is prepared by the cashier, who works under the supervison of the treasurer.

INSTRUCTIONS

indicate whether each of the procedures of internal control over cash represents 1.) a strength or 2) a weakness. for each weakness, indicate why it exists.