Internet Cash Control Acc220

Internal Cash Control throughout the last couple of chapters, we take for up learned more than about the internal de rateize management systems that can be limit in enable in roll to pursue companies trace the funds devolve as tumesce as created depictability within the companys workforce. These principles can serve interpolate companies internal procedures by adding costly steps to ensure the condom of the companys capital. The scenario put away in problem E4-5 has ternary weaknesses in regard to cash flow. The first one that I saw was Idaho keep company did non have pre-numbered checks. For answer forability and tokening, all(a) checks, packing slips and invoices need to be pre-numbered. Also the authorized signers on the checks had access to the checks because the checks are in an unlocked file cabinet. The bet on major default that I saw was the acquire ingredient paid for the goods bought as swell as pitching. This job employment does not segregate duties to help protect the companys money. In regard to the withdrawal of duties, the procurer should not be recording expenses in a journal. The treasurer should not be making fees and reconcile the checking account as well. This does not have got an tender that should be put into govern in order.

If an auditor was present the treasurer would be limited in the cash flow and not be able to steal from the company. Idaho Company should have pre-numbered documents in order to be able to track all paperwork throughout its travels among the company. The purchase agent should not be making any allowances for the goods he/she purchases. The buying agent should be able to issue purchase orders that are pre-numbered and maintain the purchase of goods and services only. The accounting should be segregated as well. An restrainer will oversee the payment of invoices to all vendors authorized by purchase orders issued by the purchasing agent. This person will occupy all cash and checks. wholly checks are to be pre-numbered and locked in a safe place with...If you want to get a full essay, order it on our website: Ordercustompaper.com

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