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:

Price Elasticity

A measure of how the quantity demanded or supplied of a good changes in response to a change in its price.

Substitutes

Goods or services that can be used in place of each other, fulfilling similar needs or desires.

Price Elasticity

An indication of the extent to which the demand or supply of a product alters following a variation in its price.

Substitutes

Products or services that can be used in place of each other, where the increase in price of one leads to an increase in demand for the other.