Listed Below Are Seven Errors or Problems That Might Occur

question 35

Essay

Listed below are seven errors or problems that 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.
Internal Control Principles
a. Establishment of responsibility
b. Segregation of duties
c. Physical control devices
d. Documentation procedures
e. Independent internal verification

Analyze and predict the solubility of substances in water based on their chemical characteristics.

Understand the nature of ionic bonds and their formation between atoms.

Differentiate between electrically neutral atoms and ions.

Identify acids, bases, and their roles in chemical reactions.

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Definitions:

Government Charges

Fees or levies imposed by the government on individuals, businesses, or transactions to fund public services and initiatives.

Common Law

A legal system based on judicial decisions and precedents rather than statutory laws.

Warming

A process wherein the average temperature of the Earth's atmosphere and oceans increases, often discussed in the context of global climate change.

Past Century

"Past century" refers to the period of 100 years immediately preceding the current moment.