Scenario 1: Kerry owns and operates a small community pharmacy. John is the pharmacist and he employs a clerk to assist with collecting, reconciling, and depositing the proceeds collected each week. Kerry leaves all the cash handling procedures to the clerk and simply confirms that cash was deposited at the end of the week. Scenario 2: Alex is also an entrepreneur who owns a business. Alex ensures that the employee who accepts payments and issues receipts is not the same person to prepare the deposits. Deposits are prepared and reconciled by another (more senior) employee who confirms cash collected based on the cash totals (from the register, receipt book, or AIS). Question 1: Compare the controls applied by the two scenarios.

Scenario 1: Kerry owns and operates a small community pharmacy. John is the pharmacist and he employs a clerk to assist with collecting, reconciling, and depositing the proceeds collected each week. Kerry leaves all the cash handling procedures to the clerk and simply confirms that cash was deposited at the end of the week. Scenario 2: Alex is also an entrepreneur who owns a business. Alex ensures that the employee who accepts payments and issues receipts is not the same person to prepare the deposits. Deposits are prepared and reconciled by another (more senior) employee who confirms cash collected based on the cash totals (from the register, receipt book, or AIS). Question 1: Compare the controls applied by the two scenarios.

Name: Scenario 1: Kerry owns and operates a small community pharmacy. John
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Description: Scenario 1: Kerry owns and operates a small community pharmacy. John is the pharmacist and he employs a clerk to assist with collecting, reconciling, and depositing the proceeds collected each week. Kerry leaves all the cash handling procedures to t

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter12: Contracts And Sales:introduction And Formation

Section: Chapter Questions

Problem 7QAP

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