RECOMMENDED!!As a new auditor for the accounting firm of Croix

  

Question 2As a new auditor for the accounting firm of Croix, Marais and Kale, you have been assigned to review the internal controls over mail cash receipts of Stillwater Ltd. Your review reveals the following: cheques are promptly endorsed ‘For Deposit Only’ but no list of the cheques is prepared by the person opening the mail. The mail is opened either by the cashier or by the employee who maintains the accounts receivable records. Mail receipts are deposited in the bank weekly by the cashier.Required:Write a letter to M.R. Lynn, owner of the Stillwater Ltd, explaining the weaknesses in internal control and your recommendations for improving the system.

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