Exercise 8-02 The following control procedures are used at Torres Company for over-the-counter cash receipts. (a) For each procedure, explain the weakness in internal control, and identify the control principle that is violated. (b) For each weakness, suggest a change in procedure that will result in good internal control.

weakness

Cashiers are not bonded. Cash is not adequately protected from theft. Inability to establish responsibility for cash with a specific clerk. The accountant should not handle cash. Cash is not independently counted.

Principal: Segregation of Duties.Human Resource Controls.Independent Internal Verification.Documentation Procedures Physical Controls.Establishment of Responsibility.

Explanation:

There should be separate cash drawers and register codes for each clerk. A cashier office supervisor should count cash. The cashier’s department should make the deposits. All cashiers should be bonded. Cash should be stored in a safe until it is deposited in the bank.

borrow money from the government then pay the government back 5k

answer; by looking at total product,marginal product,and changes in both after changes in inputs