The procedures used for over-the-counter receipts are as follows: At the close of each day’s business, the salesclerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies. An employee from the cashier’s office counts the cash, compares the total with the memo, and takes the cash to the cashier’s office.
a. Indicate the weak link in internal control.
b. How can the weakness be corrected?
Answer:
a. The salesclerks should not have access to the cash register tapes.
b. The cash register tapes should be locked in the cash register and the key retained by the cashier. An employee of the cashier’s office should remove the cash register tape, record the total on the memo form, and note discrepancies.