The Following Procedures Were Recently Implemented at the Pampered Pets

question 71

Essay

The following procedures were recently implemented at the Pampered Pets, 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) At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages
in their registers.

(b) At the end of the day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the
deposit receipt obtained from the bank.

(c) After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the
check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher
and supporting documentation to the accounts payable clerk for filing.

(d) Along with the petty cash receipts for postage, office supplies, etc., several postdated employee
checks are in the petty cash fund.

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Definitions:

Chart

A graphical representation of data designed to make the information easily understandable at a glance.

Distinctive Competition

Is the unique competitive edge or positioning that sets an entity apart from its competitors in the marketplace.

Unique

Being the only one of its kind; without equal or equivalent in characteristic or importance.

Starbucks Coffee

An international coffee company and coffeehouse chain known for its specialty coffee drinks.