All Mail Is Opened by a Mail Clerk, Who Forwards

question 169

Essay

All mail is opened by a mail clerk, who forwards all of the cash remittances to the accounting department. The accounting department prepares a listing of the cash receipts and then forwards a copy of the list to the accounts receivable clerk, so she can record the payments in the accounts.
Can anything be done to strengthen the internal control procedures?

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Definitions:

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the company's assets and earnings.

Amortization Expense

Amortization expense is the process of systematically allocating the cost of an intangible asset over its useful life, reflecting the consumption of the asset's economic benefits over time.

Significant Influence

The ability to engage in the decisions related to the financial and operating policies of an investee without having control over those policies.

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and a right to vote on corporate matters.