Explain the weakness in internal control

Assignment Help Cost Accounting
Reference no: EM13531043

The following control procedures are used in Danner Company for over-thecounter cash receipts.

1. Cashiers are experienced; thus, they are not bonded.

2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.

3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.

4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.

5. The company accountant makes the bank deposit and then records the day"s receipts.

Instructions

(a) For each procedure, explain the weakness in internal control and identify the control principle that is violated.

(b) For each weakness, suggest a change in the procedure that will result in good internal control.

Reference no: EM13531043

Questions Cloud

Healthcare system and promote access for all americans : In the role of nurse as teacher, how can nurses influence legislators in order to improve the healthcare system and promote access for all Americans?
What is the current in this loop : A rectangular loop of 250 turns is 20.8 cm wide and 16.5 cm high. What is the current in this loop if the maximum torque in a field of 0.410 T is 23.1 N·m
Suggest ways to improve the inventory management : Determine at least two (2) metrics to evaluate supply chain performance of the companies; suggest improvements to the design and operations of their supply chains based on those metrics.
Financial market measures : Using the list from the back of your textbook, for the following 6 diagnostic financial performance categories, decide which ratios (2-3 for each diagnostic category listed) you wish to use.
Explain the weakness in internal control : Explain the weakness in internal control and identify the control principle that is violated and suggest a change in the procedure that will result in good internal control.
What is the proper adjusted cash balance per books : What is the proper adjusted cash balance per books and prepare the adjusting journal entries necessary to determine the adjusted cash balance per books.
What balance should netzloff report : What balance should Netzloff report as its "Cash and cash equivalents" balance at April 30, 2012 and In what account(s) and in what financial statement(s) should the items not included in "Cash and cash equivalents" be reported?
Prepare a cash budget for january and february : The company wants to maintain a minimum monthly cash balance of $20,000 - Prepare a cash budget for January and February.
Compute the lower-of-cost-or-net realizable value : Franklin Company has the following four items in its ending inventory as of December 31, 2012. The company uses the lower-of-cost-or-net realizable value approach for inventory valuation following IFRS.

Reviews

Write a Review

Cost Accounting Questions & Answers

  Yuli copters is in the business of designing and

yuli copters is in the business of designing and manufacturing helicopters for commercial military and pleasure use.

  Determining appropriate product costs

Determining appropriate product costs is essential to reporting a reliable inventory valuation. Fraud examiners have indicated that scams that involve product costs and expenses are relatively easy to detect.

  Compute the budgeted cash payment for purchases

Purchases will be made in 12 equal monthly amounts and paid for in the following month. Compute the budgeted cash payment for purchases of Calvos for 2010.

  Milt corporation owns and operates two facilities that

milt corporation owns and operates two facilities that manufacture paper products. one of facilities is situated in

  Pittman company is a small but growing manufacturer of

pittman company is a small but growing manufacturer of telecommunications equipment. the company has no sales force of

  What is the growth rate in sales for the past

What is the growth rate in sales for the past three years - are revenues and expenses growing at the same rate? What was the experience in the past few years?

  Compute the current ratio

Using the following data, compute the current ratio. Return on sales, asset turnover, and return on equity.

  What are the investments payback period

What are the investment's payback period, IRR, and NPV, assuming the firm's WACC is 9% and if the firm requires a payback period of less than 5 years, should this project be accepted?

  Compute the companys projected operating profit

Suppose fixed costs do not change, but variable costs increase by 5% before deliveries of widebody passenger jets begin in 2012. Compute the new break-even point. What strategies might the company use to help assure profitable operations in light ..

  What recommendation would make to walters company

Grade A wire requires $450,000 of monthly variable costs to process into staples, which can be sold in the market on 5/1/XX for $7.00 per pound. Grade B wire requires $600,000 of monthly variable costs to process into paperclips, which can be sold..

  Evaluate the total gross estate

Evaluate the total Gross estate and determine the total gross deductions?

  What is the ending inventory value at cost

Barker Pet supply uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $531,200 ($653,800).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd