Concerning revenue (receipt), each of the department has cash till for receiving patients' payments. Patients of WeCare Sdn Bhd can pay either in cash or using their credit card. Each department has one account clerk that maintains the revenue that comes into the department. The accounting clerk raises sales invoices, process payment, and receives payment upon receiving an advice note from the employee that provides the service. The design of the sales system is such that the system automatically generates the bill for each patient. The head of departments close the tills at the close of work each day and record and perform the reconciliation of cash receipt and credit card voucher with the total daily reading of revenue receipt generated from the till. A significant portion of WeCare Sdn Bhd patient uses cash as a medium of payment. The head of each department keeps all cash receipt in a password locked safe. The password of the safe is only known to the departmental heads. Cash collected over while is transferred to bank via a security company who will then issue a receipt for all the sum received. The frequency and amount limit to call the security company for cash transfer is at the departmental heads' discretion. Three days after each transaction initiation, the credit card company remits all credit card transactions directly into WeCare Sdn Bhd's bank account. a) Explain internal control deficiencies in the WeCare Sdn Bhd cash and payment system and suggest possible control to resolve it.
Concerning revenue (receipt), each of the department has cash till for receiving patients' payments. Patients of WeCare Sdn Bhd can pay either in cash or using their credit card. Each department has one account clerk that maintains the revenue that comes into the department. The accounting clerk raises sales invoices, process payment, and receives payment upon receiving an advice note from the employee that provides the service. The design of the sales system is such that the system automatically generates the bill for each patient. The head of departments close the tills at the close of work each day and record and perform the reconciliation of cash receipt and credit card voucher with the total daily reading of revenue receipt generated from the till. A significant portion of WeCare Sdn Bhd patient uses cash as a medium of payment. The head of each department keeps all cash receipt in a password locked safe. The password of the safe is only known to the departmental heads. Cash collected over while is transferred to bank via a security company who will then issue a receipt for all the sum received. The frequency and amount limit to call the security company for cash transfer is at the departmental heads' discretion. Three days after each transaction initiation, the credit card company remits all credit card transactions directly into WeCare Sdn Bhd's bank account.
a) Explain internal control deficiencies in the WeCare Sdn Bhd
cash and payment system and suggest possible control to resolve it.
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