Grand Canyon ACC 250 Module 6 DQ – Reporting and Interpreting Assets (2014)

ACC-250 |
Reporting and Interpreting Assets
Module
6 DQ 2
A textbook production company makes all sales
on credit. Cash receipts arrive by mail by Employee A. Someone in the mailroom
opens envelopes and separates the checks from remittance advices. The same
person forwards the checks to Employee B. Employee B makes a daily bank
deposit, but does not have access to accounting records. The accompanying
remittance advices are forwarded from the mailroom (by Employee A) to the
accountant for entry into the books. Where are the weaknesses in internal
control? What are possible ramifications to the gaps? What are the remedies to
these weaknesses?