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E7-3 The following control activities are used at Tolan Ltd. for over-the-counter cash receipts 1....

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Accounting

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E7-3 The following control activities are used at Tolan Ltd. for over-the-counter cash receipts 1. Cashiers are experienced, so they are not bonded. 2. All over-the-counter receipts are received by one of three dlerks. The clerks share a cash register with a single cash drawer. 3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked strongbox in the stockroom until it is deposited in the bank. 4. At the end of each day, the total eceipts are counted by the cashier on duty and reconciled to the cash register total. 5. The company accountant makes the bank deposit and then records the day's receipts. 6. If a customer has the exact change and does not want a receipt, the sale is not entered in the cash register. The money is kept in a loose change box. Instructions (a) For each of the above situations, explain the weakness and identify the control activity that is violated (b) For each weakness, suggest an improvement

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