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The mailroom employees send all remittances and remittance advices to the cashier. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the Accounting
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34 votes
34 votes
The mailroom employees send all remittances and remittance advices to the cashier. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the Accounting Department.

a. Indicate the weak link in internal control in the handling of cash receipts.
b. How can the weakness be corrected?

User Dbramwell
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1 Answer

19 votes
19 votes

Answer:

a. There is weak control measure by sending the remittance advice to the cashier

b. To remedy this weakness in control the mailroom can send the remittance advice directly to the accounting department

Step-by-step explanation:

In the given scenario the mailroom sends remittance advice to the cashier who then processes deposit and sends the remittance advices and duplicate deposit slips to the Accounting Department.

Given the opportunity the cashier can divert some of the remittance advice without the accounting department knowing since the mailroom does not report anything to the accounting department.

To avoid this risk in operations it will be better for the mailroom to send the remittance advise to the accounting department.

The accounting department can now forward to the cashier for processing

User Rrd
by
2.5k points
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