Question

What internal control procedures would you recommend in each of the following situations?

2. An antique store has one employee who is given cash and sent to garage sales each weekend. The employee pays cash for any merchandise acquired that the antique store resells.

Short answer

Answer

The employee should sign a receipt for the aggregate sum of money the individual is given each end of the week. Each time the employee makes a buy, the individual should acquire a signed sales receipt for the payment.

Step-by-step solution

Step-by-Step SolutionStep 1: Meaning of Internal Control

As characterized by auditing and accounting, internal control is a cycle for guaranteeing an association's objectives in operational effectiveness and proficiency, reliable financial reporting, and compliance with laws, guidelines, and policies.

Internal control procedures-

The sales receipt ought to list the things bought and the prices paid. When the employee returns to the store, the all-out worth of the signed sales receipts and any remaining cash ought to approach how much money was initially given to the employee.Likewise, the product brought back by the employee ought to be equivalent to the things recorded on the signed sales receipts.