BYP8-5 As new auditor for CPA firm of Croix, Marais, and Kale, you have been allotted to review internal controls over mail cash receipts of Manhattan Company. Your review reveals following: Checks are promptly endorsed "For Deposit Only," but no list of checks is made by person opening mail. Mail is opened either by cashier or by employee who keeps accounts receivable records. Mail receipts are deposited in bank weekly by the cashier.
prepare down letter to Jerry Mays, owner of Manhattan Company, describing weaknesses in internal control and suggestions for enhancing the system.