Identify the Internal Control Procedures Applicable to Cash Receipts for Ferguson

question 141

Essay

Identify the internal control procedures applicable to cash receipts for Ferguson Company in each of the following cases.
1. All cashiers are bonded.
2. The treasurer compares the total cash receipts to the bank deposit daily.
3. The bookkeeper records cash receipts which are held by the treasurer.
4. Only the treasurer holds cash receipts.
5. Deposit slips are completed for each deposit.

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Definitions:

Legal Precedents

Past court decisions that are used as a guide in interpreting and applying the law in future cases.

Judicial Precedents

Decisions from previous court cases which are used as a guide for judging similar future cases, establishing consistency in legal reasoning.

Legal Merits

The inherent rights and wrongs of a legal case, as distinct from extraneous or technical aspects, used in determining the justice of the case.

Stare Decisis

A legal principle that obliges courts to follow the rulings of higher courts in similar cases to ensure consistency and predictability in the law.