The Following Internal Control Procedures Are Used by Brooks Company

question 64

Essay

The following internal control procedures are used by Brooks Company for cash receipts and disbursements:
1. Cashiers receive all over-the-counter receipts and place the cash into a single cash drawer.
2. When cash in the drawer exceeds $500, it is placed in an envelope marked "cash" and stored in a drawer in the supervisor's office.
3. The company's accountant makes daily bank deposits.
4. The clerk in the receiving department authorizes all payments for purchases.
5. Blank cheques are kept in the main office.
Instructions
For each of the above procedures, explain the weakness in internal control, identify the control policy or procedure violated and suggest a change in procedure that will result in better control.

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Definitions:

Culturally Diverse Area

A region characterized by the presence of multiple cultural groups and identities, often leading to a rich blend of traditions, languages, and social practices.

Culturally Sensitive

Acknowledging and respecting the beliefs, practices, and needs of people from diverse cultural backgrounds in service provision.

Emergency Department

A specialized department in a hospital that provides immediate treatment for acute illnesses and traumatic injuries.

Culture is Adaptive

The concept that cultures can change in response to changing social, environmental, and technological challenges, helping societies to survive and thrive.