Which of the following would the auditor consider to be an incompatible operation if the cashier receives remittances from the mail room?Select one:a.The cashier makes the daily deposit at a local bank.b.The cashier endorses the checks.c.The cashier posts the receipts to the accounts receivable subsidiary ledger.d.The cashier prepares the daily deposit.

Select all that applyIdentify the examples of good internal controls designed to protect cash received in the mail.Multiple select question.The cashier records the amounts received in the accounting records.The recordkeeper and the person who reconciles the bank balance do not have access to cash.The bank balance is reconciled by the person(s) opening the mail.Two people are assigned the task of, and are present for, opening the mail.

hich of the following is an internal control for checks received through the mail?Multiple ChoiceThe cashier prepares a journal entry to record price, quantity sold, and cash received.The accounting department counts the cash, prepares the deposit slip and deposits the cash in the bank.The accounting department compares the cash in the register with the cash count sheet.The mail clerk gives checks and money orders to the person who makes the bank deposit.

The person who opens the mail commonly prepares a remittance advice when a customer fails to return one with a payment. Consequently, mail should be opened by theSelect one:a.receptionistb.accounts receivable clerkc.credit managerd.sales manager

Which of the following is not considered cash for financial reporting purposes?Group of answer choicesPetty cash funds and postal money orderUnrestricted compensating balancesDividend, interest and tax fundPostdated and stale checks from customers

Q8.24 While working on the audit of Cosmopolitan Ltd, you are involved in a review of control activities in the cash disbursement area. As part of your review, you have noted the following procedures:All payments prepared by the clerk include a pre-numbered bank transfer requisition.The bank transfer requisition requires the clerk to confirm that they have performed the following procedures for each payment:checked the additions and prices on the invoiceconfirmed the details on the invoice have been matched to a delivery note by the warehousing departmentverified a valid purchase order exists for the goods.The clerk forwards the bank transfer requisition together with any supporting documentation (invoice and any other relevant correspondence) to the CFO for approval.Required:For each of the three controls identified above:(a) Describe the purpose of the control—what is the control designed to prevent or detect?(b) Identify the account(s) and assertion(s) that this control will have an effect on in the financial report.(c) Give one example of a procedure that could be used to test the control.