Internal Controls Analysis
Dewey, Cheatam and Howe Is a Consulting

Essay

Internal controls analysis
Dewey, Cheatam and Howe is a consulting firm in southern California. The firm employs the internal control procedures listed below as part of its operations. Place an "X" in the appropriate column to indicate whether each item listed is a strength or a weakness for the firm's internal control system. $\begin{array}{|l|l|l|}\hline & \text { Strength } & \text { Weakness } \\\hline \text { Any employee in the firm can sign checks.} & & \\\hline \text { Blank checks are stored in a locked filing cabinet.} &&\\ \hline\text { Checks from clients can be made out to the firm or any of } \\\text { the partners individually. } \\\hline\text { Office rent is paid automatically and electronically each } \\\text { month. } \\\hline \text { One of the partners deposits all credit card receipts and }\\\text { checks in the bank at the end of each month.}\\\hline \text { Signature cards, which specify who can sign checks, are re-}\\\text { done only when a new employee is hired.}\\ \hline \text {The cash receipts clerk reconciles the bank statement. }\\\hline \text {The firm accepts credit cards and checks, but not cash.}\\\hline \text { The firm maintains a petty cash fund of \( \$ 1,000 \). }\\\hline \text {Two signatures are required on all checks over \( \$ 500 \).}\\\hline \end{array}$