The cashier diverted cash received over the counter from a customer to his own use and wrote off the receivable as a bad debt. Select the control that should have prevented the error.
A) Receipts are given directly to the cashier by the person who opens the mail.
B) Journal entries are approved by a responsible official.
C) Remittance advices, letters or envelopes that accompany receipts are separated and given directly to the accounting department.
D) Aging schedules of accounts receivable are prepared periodically and reviewed by a responsible official.

Question

Quizplus · Accepted Answer

The Answer of The cashier diverted cash received over the counter from a customer to his own use and wrote off the receivable as a bad debt. Select the control that should have prevented the error.
A) Receipts are given directly to the cashier by the person who opens the mail.
B) Journal entries are approved by a responsible official.
C) Remittance advices, letters or envelopes that accompany receipts are separated and given directly to the accounting department.
D) Aging schedules of accounts receivable are prepared periodically and reviewed by a responsible official.

The Cashier Diverted Cash Received Over the Counter from a Customer