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

question 21

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, 2012 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:

18 Months

A developmental milestone in childhood characterized by significant growth in language, cognitive abilities, and motor skills.

Mirror Neurons

Neurons that fire both when an individual performs an action and when the individual observes the same action performed by another.

Particular Behavior

A specific action or pattern of actions exhibited by an individual or group, distinguished by its distinct characteristics.

Attachment Neurons

A term not recognized in standardized scientific literature, possibly referring to neural mechanisms involved in attachment behavior. NO.