Dogtopia sells pet supplies and food and handles all sales with a cash register.

Question

Dogtopia sells pet supplies and food and handles all sales with a cash register. The cash register displays the amount of the sale. It also shows the cash received and any change returned to the transactions. At the end of the day, the clerk counts the cash in the register and gives it to the cashier for deposit in the company bank account. Requirements 1. Identify the internal control weakness over cash receipts. 2. What could you do to correct the weakness? Requirement 1. ldentify the internal control weakness over cash receipts The following are the weaknesses in internal control. (Only complete the necessary answer boxes.)

Explanation / Answer

Requirement 1:

The clerk counts the cash in the cash draw at the end of the day.

The cash register does not keep an internal record of the sale.

Requirement 2:

The cash register should keep an internal record of the sale.

A manager counts the cash in the cash drawer at the end of the day and compares it to the register tape.

The register tape will go to the accounting department to record the cash and sale in the journals.

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