The Following Procedures Were Recently Implemented at the Health Station

question 173

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, 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:

Chicago

A major city in the United States located in the state of Illinois, known for its vibrant arts scene, numerous cultural attractions, and significant architectural achievements.

Gilded Age

A period in the late 19th century in the United States characterized by rapid economic and industrial growth, along with significant social inequality and political corruption.

Old Country

often used to refer to the original homeland of immigrants or their ancestors, especially in a nostalgic or affectionate manner.

Immigrants

Individuals who move from one country to another with the intention of settling in the new country, often in pursuit of better opportunities, safety, or family reunion.