Question

Dogtopia sells pet supplies and food and handles all sales with a cash register. The cash register displays the amount of the sale. It also shows the cash received and any change returned to the customer. The register also produces a customer receipt but keeps no internal record of the transactions. At the end of the​ day, the clerk counts the cash in the register and gives it to the cashier for deposit in the company bank account.Requirements1. Identify the internal control weakness over cash receipts.2. What could you do to correct the​ weakness?

Answer 1

Step-by-step explanation:

1- Identify the internal control weakness over cash receipts.

Internal control helps the organization to follow company policy and consequently to maintain the ideal standard established by the organization. Through this instrument, it is possible to obtain more efficiency and effectiveness in operations, in addition to increasing the reliability of financial statements, preventing possible fraud.

2-What could you do to correct the​ weakness?

The ideal would be to implement an internal sales record tape at the cash register, and at the end of the day to count the sales money and compare it to the results shown by the tape.

The registration tape would then be forwarded to the company's accounting department, so that the money and sales were recorded in the accounting diaries, which would increase internal control and guarantee the reliability of the processes.