For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer

Question

The mailroom employee opens all incoming mail

Customers' checks are sent to the treasurer, and remittance advices are sent to the accounting department. The controller compares the daily bank deposit amount from the treasurer and the daily debit to cash from the accounting department.
What will be an ideal response

Answer 1

This is a strength. The accounting department does not receive checks. The accounting records are updated with the remittance advices. The controller compares the amounts deposited to the amount of cash recorded by the accounting department. Thus, the custody of assets is kept separate from accounting. The mailroom clerk, accounting staff, treasurer, and controller all have separate responsibilities.