Reference no: EM132537976
Point 1: Addis appreciation society operates a museum for the benefit and enjoyment of the community. During hours when the museum is open to the public, two clerks who are positioned at the entrance collect a five-birr admission fee from each nonmember patron. Members of the Addis appreciation society are permitted to enter free of charge upon presentation of their membership cards.
Point 2: At the end of each day one of the clerks delivers the proceeds to the treasurer. The treasurer counts the cash in the presence of the clerk and places it in a safe. Each Friday afternoon the treasurer and one of the clerks deliver all cash held in the safe to the bank and receive an authenticated deposit slip that provides the basis for the weekly entry in the cash receipts journal.
Point 3: The board of directors of the Addis appreciation society has identified a need to improve its internal control over cash admission fees. The board has determined that the cost of installing turnstiles, sales booths, or otherwise altering the physical layout of the museum will greatly exceed any benefits which may derived. However, the board has agreed that the sale of admission tickets must be an integral part of its improvement efforts.
Point 4: Mr. Teshale has been asked by the board of directors of the Addis appreciation society to review the internal control over cash admission fees and provide suggestions for improvement.
Required:
Question 1: Identify weaknesses in the existing internal control over cash admission fees, which Mr. Teshale should identify, and recommend one improvement for each of the weaknesses identified.
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: Identify weaknesses in the existing internal control over cash admission fees, which Mr. Teshale should identify, and recommend one improvement.
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