As Payments Are Received, One Mailroom Employee Is Assigned the Responsibility

question 22

Multiple Choice

As payments are received, one mailroom employee is assigned the responsibility of prelisting receipts and preparing the deposit slip prior to forwarding the receipts, deposit slip, and remittance advices to accounts receivable for posting. Accounts receivable personnel re-foot the deposit slip, stamp a restrictive endorsement on the back of each check, and then forward the receipts and deposit slip to the treasury department. Evaluate the internal control of the described process. Which of the following is a reasonable assessment of internal control in this process?

• A)Adequate internal control.
• B)Inadequate internal control because mailroom employees should not have access to cash.
• C)Inadequate internal control because treasury employees should prepare the deposit slip.
• D)Inadequate internal control because of a lack of separation of duties.

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Definitions:

Sensory Receptors

Specialized cells or proteins in organisms that detect and respond to external stimuli, transmitting sensory information to the nervous system.

Efferent Neurons

Neurons that transmit action potentials from the brain or spinal cord to muscles or glands. Compare with afferent neurons.

Sonar

Sonar is a technique that uses sound propagation (usually underwater) to navigate, communicate, or detect other vessels by sending out pulses of sound and listening for echoes.

Echolocation

Determination of the position of objects by detecting echoes of high-pitched sounds emitted by an animal; a type of sensory system used by bats and dolphins.