control procedures would you recommend in each of the following situations? What
ID: 2574936 • Letter: C
Question
control procedures would you recommend in each of the following situations? What internal 1. A conc ion company has one employee who sells towels, coolers, and sunglasses at the beach. Each Inter Exer ee is given enough towels, coolers, and sunglasses to last through the day and enough reco cash to make change. The money is kept in a box at the stand. e has one employee who is given cash and sent to garage sales each weekend. The CI 2. An antique stor employee pays cash for any merchandise acquired that the antique store resells.Explanation / Answer
1 Answer:-
(a) To establish the responsibility there should be two employees appointed one to look after the inventory and the other to record for money control.
(b) Should maintain a separate record keeping from custody of assets and also should record the sales.
(c) It is very much essential to maintain the cash register at sales stand. If it is not maintained then it is advisable to calculate the sale value of towels, coolers and sun glasses which are given for the employees to sell at the beach. Later the employee is required to sign the receipt for the amount of cash and materials received. At the end of the day, the employee should return the cash along with the number of towels, coolers & sunglasses if they are still left with him.
2 Answer :- (a) firstly, maintain adequate records of all the sales taken place. It should be adequately and properly recorded.
(b) It should keep separate record keeping from custody of assets whereas another employee should keep record of sales.
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