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Accounting - Internal Controls

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The following control procedures are used at Sandwich Company for over-the-counter cash receipts For each procedure, explain the weakness in internal control, and identify the control principle that is violated. For each weakness, suggest a change in procedure that will result in good internal control.

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(a)
1. Sandwich Company should not put the cash in excess to be stored in an unlocked case in the stock room because there is still the risk of being stolen and that it violates the physical control principle.

2. Sandwich Company should not have three clerks to register all over-the-counter receipts because there could be some mistakes happened and that it would be difficult to identify who made the mistakes. ...

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