Phil Goss Has Worked for Dr

question 107

Essay

Phil Goss has worked for Dr. Stan Hilton for several years. Phil demonstrates a loyalty that is rare among employees. He hasn't taken a vacation in the last three years. One of Phil's primary duties at the medical office is to open the mail and list the checks received. He also takes cash from patients at the cashier window as patients leave. At times it is so hectic that Phil doesn't bother with giving each patient a receipt for the cash paid on their accounts. He assures them he will see to it that they receive the proper credit. When the traffic is slow in the office Phil offers to help Pam post the payments to the patients' accounts receivable. She is always happy to receive his help because he is a very conscientious worker.
Instructions
Identify any principles of internal control that may be violated in this medical office situation.

---

Definitions:

Debit Card

An automated teller machine card used at the point of purchase to avoid the use of cash. As this is not a credit card, money must be available in the user’s bank account.

Automated Teller Machine Card

A plastic card linked to a bank account, used at ATMs for transactions such as cash withdrawals, deposits, and balance checks.

Bank Account

A bank account is a financial account maintained by a banking institution in which the deposits, withdrawals, and balances of cash are recorded for the account holder.

Adjustment Costs

The costs associated with holding too little cash.