Topic 05 Assignment: Internal Controls And Sarbanes-Oxley

Weak link in internal control Sales clerks count the money in their cash drawers at the end of the day and have access to the mount recorded by the cash register. This is the weak link as sales clerks can always alter the cash in the drawers to tally with the cash recorded by the cash register. In this way, the amount recorded by the cash register ceases to be an instrument of check and control. A dishonest sales clerk may be tempted not to declare sales collections over and above what is captured by the cash register. The employee from the cashiers office does not verify the amount recorded on the cash register. This is a major weakness in internal controls as there is no independent verification. Instead of looking at the source of the amount recorded, the employee from the cashiers office only verifies the cash count with the memo. These two documents are from the same person and should not be used for verification of cash collections. b. how the weakness can be collected The weakness in internal controls can be corrected by securing an independent verification of the Sales Clerks cash count at the end of