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.

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Definitions:

Lymphocytes

A type of white blood cell that plays a significant role in the body's immune system, fighting infections and diseases.

Increased Illness

Refers to a rise in the prevalence or severity of diseases or health conditions within a population over a given time period.

Epinephrine

Known as adrenaline, this compound functions both as a hormone and a neurotransmitter, crucial for triggering the fight-or-flight reaction in the body.

Cortisol

A steroid hormone produced by the adrenal glands, often released in response to stress, affecting metabolism and immune responses.