Topic: Fran Jones is the petty-cash custodian. Fran approves all requests for payment out of...
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Accounting
Topic: Fran Jones is the petty-cash custodian. Fran approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month, Fran submits a list of all accounts and amounts charged, and a check is written to her for the total amount. Fran is the only person ever to tally the fund.
Required: Write a detailed memo to your instructor: 1. Indicating the apparent internal control weakness in the procedure described above. 2. Suggesting alternative procedures to eliminate the weaknesses. 3. Explaining two administrative, two preventive, and two detective controls a company may institute over cash. Please be specific.
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