Listed Below Are Seven Errors or Problems Which Might Occur

question 138

Essay

Listed below are seven errors or problems which might occur in the processing of cash transactions. Also shown is a list of internal control principles. Evaluate each possible error and cite a principle that is listed that would reduce the probability of the error occurring. If none of the principles given will correct the problem, write "None." If you think more than one principle is appropriate, list all principles that apply.
Possible Errors or Problems
1. An employee steals the cash collected from a customer for an account receivable and conceals this theft by issuing a credit memorandum indicating that the customer returned the merchandise.
2. A small fire destroys 3 days of cash receipts.
3. The official designated to sign checks is able to steal blank checks and issue them without fear of detection.
4. A salesclerk in serving customers often rings up a sale for less than the actual amount and then keeps the additional cash collected from the customer.
5. Three cashiers use one cash register drawer and the cash in the drawer is often short of the balance kept on hand.
6. Each cashier counts his own register drawer each day and verbally reports the results to the supervisor.
7. Cashiers with over 5 years' experience are not bonded.

Comprehend the career development stages and the concept of career paths.

Understand the concept and application of various recruitment methods and career paths.

Recognize the value and mechanisms of outplacement services.

Identify effective recruitment and retention strategies.

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Definitions:

Inconsistent Information

Information or data that does not align or correlate with other information, often leading to confusion or the need for further investigation.

Well-Established Impression

A firmly held belief or opinion about someone or something that is based on extensive experience or evidence.

Simple Judgement

The process of making a decision or forming an opinion based on a straightforward evaluation of evidence or facts.

Approach Behaviours

Actions directed towards obtaining positive outcomes or experiences.