question archive Roper Stores use point-of-sale terminals as cash registers
Roper Stores use point-of-sale terminals as cash registers
Subject:AccountingPrice:2.89 Bought3
Roper Stores use point-of-sale terminals as cash registers. The register shows the amount of each sale, the cash received from the customer, and any change returned to the customer. The machine also produces a customer receipt but keeps no record of 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.
Write a memo to convince the store manager that there is an internal control weakness over cash receipts. Identify the weakness that gives an employee the best opportunity to steal cash, and state how to prevent such a theft.
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TO: Store Manager
FROM: Student
SUBJECT: Evaluation of internal control and plan for improvement
There is a weakness in internal control over cash receipts. The cash registers do not keep a record of sales. With no record, there is no way to determine how much cash should be in the cash drawer. This omission makes it easy for the cashier to steal cash and not get caught.
To improve internal control, the company should use cash registers that record each sale and tabulate total cash sales each day. The manager can prove the amount of cash in the cash drawer against this recorded amount.
