Which of the following procedures would weaken control over cash receipts that arrive through the mail?
A)After the mail is opened,a list (in triplicate)of the money received is prepared with a record of the sender's name,the amount,and an explanation of why the money is sent.
B)The bank reconciliation is prepared by a person who does not handle cash or record cash receipts.
C)For safety,only one person should open the mail,and that person should immediately deposit the cash received in the bank.
D)The cashier deposits the money in the bank and the recordkeeper records the amounts received in the accounting records.
E)The employees handling the cash receipts are bonded.

Question

Quizplus · Accepted Answer

Option C weakens control over cash receipts that arrive through the mail because only one person handles and processes the cash, making it easier for the person to steal the cash. Options A, B, D, and E all strengthen control over cash receipts by creating a paper trail, separating duties, recording transactions, and ensuring employees are bonded.

Which of the Following Procedures Would Weaken Control Over Cash