Lp5 Assignment: Internal Controls And Sarbanes-Oxl

LP5 Assignment: Internal Controls and Sarbanes-OxleyE5-16: Bank reconciliation Addition to the cash balance according to the bank statement3. Check incorrectly charged by bank5. Deposit in transit $12,375Deduction to the cash balance according to the bank statement3. Check incorrectly charged $506. Outstanding checks $14,770An addition to the cash balance according to company recordsCheck recorded for $ 7357. Note collected by bank $10,600A deduction to the cash balance according to company recordsBank service charges, $36Check Drawn for $375 recorded correctlyCheck returned by bankP5-1: Evaluate internal control of cash(1) Strength as all sales receipts are recorded on receipt and can be verified by the customer. Sales records are kept under lock and key(2) Weakness as duty of verifying total collections should be separated from the duty of collecting cash.(1) Strength as mailed checks are banked separately without combining with counter collections.(1) Strength as cash disbursements are not made from revenue collections.(1) Strength as each cashier is individually responsible for their cash box.(1) Strength as there is separation of duties of cash collection and reconciliation.(1) Strength as no voucher or supporting document can be