The Following Procedures Were Recently Implemented at the Health Station

question 128

Essay

The following procedures were recently implemented at the Health Station, Inc. For each procedure, indicate whether the internal control over cash represents (1) a strength or (2) a weakness. If it is a weakness, please explain why.
(a) All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts.
(b) The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer's office for approval.
(c) At the end of each day, all cash receipts are placed in the bank's night depository.
(d) The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer.

---

Definitions:

Pylon Temple

An Egyptian temple entered through a monumental pylon, typical of the New Kingdom.

Hypostyle Hall

An architectural space characterized by a large room with a roof supported by numerous columns, commonly found in Egyptian temples.

Palette

A board on which an artist mixes paint, also refers to the range of colors used in a particular painting or by an artist.

Narmer

An ancient Egyptian pharaoh, historically credited with the unification of Upper and Lower Egypt around the 31st century BC and often associated with the iconic Narmer Palette.