ABC Insurance Company has a branch office, which consists of a branch manager and 5 clerical assistants. The branch manager reports to a division manager. The branch office has its own bank account in which daily takings are deposited by the cashier at the end of each day. The cash register rolls are reconciled to these cash deposits by the sales clerk. Cheques are drawn from the bank account to pay branch suppliers. The cheques must be signed by either the branch manager or the regional manager. Expenditure reports are completed by the branch manager, who then sends them to the regional office. Bank statements are received by the branch manager, who performs the bank reconciliation on a monthly basis
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