Evaluate the internal controls in each situation as strong or weak.Cash receipts: Samson Auto Parts has__internal controls. There is.a. a good separation of duties.b. a good system of documenting transactions.c. not a good separation of duties.d. not a good system of documenting transactions.The following situations describe two cash payment situations and two cash receipt situations. In each pair, one set of internal controls is better than the other. Requirement: Evaluate the internal controls in each situation as strong or weak.Cash receipts: Samson Auto Parts has_internal controls. There is:__.A. Different people receive cash, record the cash, and deposit the cash.B. The accountant should maintain detailed records of the accounts receivable that are collected C. The cash collected is properly summarized and recorded by the accountant. D. The same person receives cash, records the cash, and deposits the cash.A) At Samson Carpet Mill, cash received by mail goes straight to the bookkeeper, who debits Cash and credits Accounts Receivable to record the collections from customers. The bookkeeper then deposits the cash in the bank. B) Cash received by mail at Liberty Dermatology Clinic goes to the mailroom, where a mail clerk opens envelopes and totals the cash receipts for the day. The mail clerk forwards customer checks to the cashier for deposit in the bank and forwards the remittance advices to the accounting department for posting credits to customer accounts. Cash payments: A) Scott Construction policy calls for construction supervisors to request the equipment needed for their jobs. The home office then purchases the equipment and has it shipped to the construction site. B) Remington Home Construction's policy calls for project supervisors to purchilse the equipment needed for jobs. The supervisors then submit the paid receipts to the home office for reimbursement. This policy enables supervisors to get the equipment quickly and keep

Samson Auto has weak internal controls because the same person being the bookkeeper, receives cash, records it and deposits it. This gives the bookkeeper the opportunity to commit fraud.

2. Liberty Dermatology Clinic has strong internal controls. - There is a good separation of duties.

There are various people handling the cash so Liberty has stronger controls. The mail clerk receives the money, the cashier deposits it and the accounting department records it. There is therefore less chance of fraud.

3. Scott Construction has strong internal controls. - Good separation of duties.

Construction supervisors first request equipment they need, and the home office does the purchasing and shipping. This separation of duties will help reduce fraud as the supervisors will not make fraudulent claims that will be untraceable.

4. Remington Home Construction has weak internal controls. Poor separation of duties.

At Remington, the supervisors may be able to commit fraud due to the lack of separation of their duties. They can purchase equipment needed and then get reimbursed when they do. This opens the door for fraudulent claims on the part of the supervisors so Remington does indeed have weak controls.