Amy Company uses the following control procedures for over-the-counter cash receipts. All over-the-counter receipts are registered by five clerks who use a cash register with a single cash drawer (till). To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked drawer in a desk in the back room. Each clerk counts his/her own receipts at the end of the day and reconciles that amount to the cash register total. A bookkeeper prepares a journal entry to record the day's cash receipts, then deposits the receipts in the bank. To save funds, cashiers do not get vacation days.
Instructions:
(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.