Reference no: EM13485795

For each of the following independent situations, indicate the apparent internal control weakness and suggest alternative procedures to eliminate the weaknesses.

1. John Smith is the petty cash custodian. John approves all requests for payments out of the $200 fund, which is replenished at the end of each nonth. At the end of each month, John submits a list of all accounts and amounts to be charged and a check is written to him for the total amount. John is the only person every to tally the fund.

2. All of the company's cash disbursements are made by check. Each check must be supported by an approved voucher, which is in turn supported by the appropriate invoice and, for purchased, a receiving document. The vouchers are approved by Dean Leiser, the chief accountant, after reviewing the supporting documentation. Betty Hanson prepares the checks for Leiser's signatre. Leiser also maintains the company's check register( the cash disbursements journal) and reconciles the ank account at the end of each month.

3. Fran Jones opens the company's mail and makes a listing of al checks and cash received from customers. A copy of he list is sent to Jery McDonald who maintains the general ledger accounts. Fran prepares and makes the daily deposit at the bank. Fran also maintains the subsidiary ledger for accounts receivable, which is used to generate monthly statements to customers.