Trey Osborne, administration of Valley View Clinic, seeks your advice. Valley View Clinic employs…

Trey Osborne, administration of Valley View Clinic, seeks your advice. Valley View Clinic employs 2 people in the office, Jim Bates and Rhonda Clark. Osborne asks you how to assign the various office functions to the 3 people (including Osborne) to achieve good internal control. Here are the duties to be performed by the 2 office workers and Osborne:

a. Record cash payments

b. Record cash receipts

c. Receive incoming cash from patients

d. Reconcile the bank account

e. Deposit cash receipts f. Sign checks for payment

❙ Required

1. Propose a plan that divides duties a. through f. to Bates, Clark, and Osborne. Your goal is to divide the duties so as to achieve good internal control for the clinic. (pp. 232–237)

2. Identify several combinations of duties that should not be performed by the same person. (pp. 229–234)

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