The Following Procedures Were Recently Implemented at the Health Station

question 128

Essay

The following procedures were recently implemented at the Health Station, Inc. For each procedure, indicate whether the internal control over cash represents (1) a strength or (2) a weakness. If it is a weakness, please explain why.
(a) All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts.
(b) The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer's office for approval.
(c) At the end of each day, all cash receipts are placed in the bank's night depository.
(d) The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer.

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Definitions:

Customer Desires

The preferences and requirements of consumers that influence their purchasing behavior and guide product development.

Ethical Responsibilities

The obligation of individuals and organizations to act in a manner that is fair, honest, and respectful to others and the environment.

Product Life Cycle

The sequence of stages that a product goes through from introduction to growth, maturity, and decline.

Operations Manager

An individual responsible for overseeing the production of goods and services, aiming to improve efficiency, productivity, and profitability within an organization.