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:

Electron-Transport Chain

A chain of molecular structures that move electrons from donors to acceptors through oxidation-reduction reactions, while simultaneously moving protons (H+ ions) across a membrane.

Hydrogen Ions

Positively charged ions (protons) of hydrogen, H+, which play a significant role in acid-base balance and cellular metabolism.

Plasma Membrane

A bi-layer of lipids and proteins that surrounds a cell, controlling the movement of substances in and out of the cell.

Electrons

Negatively charged subatomic particles that orbit the nucleus of an atom.