List and discuss the internal controls

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Question - Assume that the following problems with the processing of Rusty Nail Pty Ltd's cash receipts transactions occurred.

List and discuss the internal controls that could be implemented to prevent or detect each problem.

a. Recorded receipts of $2,500 were diverted to the personal use of the cashier, as the company only deposited money at the bank once a week.

b. A mail remittance of $500 in cash was misappropriated before being receipted.

c. A cash sale for $2,000 was not recorded in the cash register and was put into the cashier's pocket.

d. A payment received from a debtor was entered into the cash receipts journal but was deliberately not posted to the individual debtor's account so it could later be misappropriated from a fictitious debtor's account.

e. Cash of $10,000 was stolen from an unlocked cash register, which was also left unattended by a casual employee who was not authorised to be in that area.

Reference no: EM132030126

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