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. Requirements 1. Identify the internal control weakness over cash receipts. 2. What could you do to correct the​ weakness? Requirement 1. Identify the internal control weakness over cash receipts.

Answer 1

Answers are explained below

Step-by-step explanation:

Required: Weaknesses and Controls for them.

Solution

Weakness

1. No internal record of the transactions.

2. At the end of the​ day, the clerk counts the cash in the register.

Control

1. There should be an internal record for the transaction because it is required by the accounting department to make entries in journals.

2. As cash is a very sensible asset for the business it should be counted by manager and should be compared by the cash register.