ASSIGNMENT 3

PART A
2.
a.
Apple Blossom Cologne Company
Cash Receipts System
Internal Control Strength

No. Strength Possible Test of Control

Segregation of duties

1. The mail receipts listed by a person - Observations

who has no other cash or account
receivables responsibilities.
2. The list of mail receipts - Observations
independently reconciled to the - Inquiry
accounting records by a person
who does not have access to cash
receipts.
Access to assets

3. All receipts deposited intact. - Vouching

4. Bank deposits made by a person - Observations

who does not prepare the deposit. - Inquiry

Input Control

5. All mail receipts recorded for - Observations

control purposes.
6. The person who opens the mail - Observations
record the receipts immediately.
Process Control

7. Cash balance reconciled. - Observations

b.

Apple Blossom Cologne Company

Cash Receipts System
Internal Control Weakness

No. Weakness Potential Error Compensating Substantive

Procedure

Pemisahan Fungsi

1. A duplicate deposit - The amount of - Recalculation

ticket received by cash receipts may - Tracing
someone who does not have been - Inquiry
prepare or make the incorrectly
deposit. recorded
- Cash receipts may
have been
deposited in the
bank but not
recorded in the
cash receipts
journal
Access to Assets

2. The duties of the - Transfer of cash - Vouching

cashier separate from among bank - Recalculation
those of the accounts accounts may have
receivable clerk. been recorded
incorrectly