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:

Retention Processes

The mechanisms involved in the ability to store and recall information or experiences over time.

Self-confidence

The belief in one's own abilities, qualities, and judgment.

Self-esteem

The subjective evaluation of one's own worth as an individual or personal judgment of their own value.

Assertiveness

The quality of being confident and self-assured without being aggressive, enabling clear and direct communication.