Small Company (SC)is in its fourth year of retail operations.The owner/manager previously employed a part-time bookkeeper to sign cheques,as well as to prepare journal entries,bank reconciliations,and monthly financial statements.SC has just hired you as the first full-time accountant to replace the bookkeeper,and you are preparing the December 31,2018 financial statements.
Required:
a.Briefly explain the concept of "segregation of duties."
b.Identify an internal control issue relating to SC's cash-handling procedures,and provide your recommendation(s)to improve SC's internal controls over cash.

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The Answer of Small Company (SC)is in its fourth year of retail operations.The owner/manager previously employed a part-time bookkeeper to sign cheques,as well as to prepare journal entries,bank reconciliations,and monthly financial statements.SC has just hired you as the first full-time accountant to replace the bookkeeper,and you are preparing the December 31,2018 financial statements.
Required:
a.Briefly explain the concept of "segregation of duties."
b.Identify an internal control issue relating to SC's cash-handling procedures,and provide your recommendation(s)to improve SC's internal controls over cash.

Small Company (SC)is in Its Fourth Year of Retail Operations