Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 7 - Fraud, Internal Control, and Cash - Questions - Page 372: 7

Answer

Yes! This is a violation of internal control. If only one person has operated the register the Manager can determine the responsibility for the shortages.

Work Step by Step

If two or more individuals have worked the register, it may be impossible to detect the error, and fix the responsibility. In this case if all sales clerks make change out, of one cash register drawer, it will be impossible to fix any one responsible, in case of cash shortages.
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