The Following Procedures Were Recently Implemented at Health Station, Inc

question 127

Essay

The following procedures were recently implemented at 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, explain why.?
(a) All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares alisting of the cash receipts and forwards a copy of the list to the accounts receivable clerk forrecording in the accounts.?
(b) The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supportingdocumentation 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:

Conflicts

Situations where incompatible goals, beliefs, or actions between two or more parties result in opposition or antagonistic interaction.

Derail

To cause a process or activity to deviate from its intended course, leading to disruption or failure.

Obstacles

Barriers or hindrances that impede progress or achievement of a goal.

Performing Stage

The performing stage is a phase in group development where members efficiently work together towards common goals, demonstrating high levels of cooperation and productivity.