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The Local Museum is open for the benefit of the local area. While the museum is open two clerks, stationed at the entrance, collect a ten dollar admission fee from nonmembers. Members of the Local Museum are permitted to enter free of charge upon presentation of their membership card.
At the end of each day one of the clerks delivers the proceeds to the treasurer. The treasurer counts the cash in the presence of the clerk and places in a safe. Each Friday afternoon the treasurer and one of the clerks deliver all cash held in the safe to the bank and receive an authenticated deposit slip, which provides the basis for the weekly entry in the cash receipts journal.
The board of directors of the Local Museum has identified a need to improve the internal control system over cash sales. The board has determined that the cost of installing turnstiles or sales booths or otherwise altering the physical layout of the museum would greatly exceed any benefits that might be derived. However, the board has agreed that the sale of admission tickets must be an integral part of its improvement efforts. Your firm has been asked by the board of directors of the Local Museum to review the internal control over cash admission fees and suggest improvements.
Indicate weaknesses in the existing internal control system over cash admission fees which should be identified and recommend one improvement for each weakness identified. Use bullet points; five points will be deducted if bullet points are not used.
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