Small Company (SC)is in Its Fourth Year of Retail Operations

question 11

Essay

Small Company (SC)is in its fourth year of retail operations.The owner/manager previously employed a part-time bookkeeper to sign cheques,as well as to prepare journal entries,bank reconciliations,and monthly financial statements.SC has just hired you as the first full-time accountant to replace the bookkeeper,and you are preparing the December 31,2018 financial statements.
Required:
a.Briefly explain the concept of "segregation of duties."
b.Identify an internal control issue relating to SC's cash-handling procedures,and provide your recommendation(s)to improve SC's internal controls over cash.

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Definitions:

Body Language

Non-verbal communication through physical behaviors, such as facial expressions, gestures, posture, and eye movement, which convey messages or emotions.

Wealth And Power

The significant influence and control over resources and decision-making processes that individuals or groups may possess due to their economic status.

Organizational Position

The rank or status that an individual holds within a company's hierarchy.

Aggressive

Characterized by or displaying assertive, bold, and sometimes forceful behavior or attitudes.