Internet Cash Control Acc220

Internal Cash Control Throughout the last brace of chapters, we make up learned more about the interior interchange management systems that can be limit in gift in roll to attend companies trace the capital flow as tumesce as created depictability within the partys workforce. These principles can help change companies internal procedures by adding expensive steps to ensure the invulnerablety of the comp whatevers funds. The scenario abandoned in problem E4-5 has multiple weaknesses in debate to cash flow. The first one that I saw was Idaho bon ton did non have pre-numbered checks. For accountability and tracking, all checks, packing slips and invoices select to be pre-numbered. Also the authorized signers on the checks had access to the checks because the checks be in an unlocked file cabinet. The second major failure that I saw was the acquire agent paid for the goods bought as well as gear uping. This job duty does not single out duties to help protect the companys money. In figure to the insulation of duties, the procurer should not be recording expenses in a journal. The treasurer should not be making fees and admit the checking account as well. This does not feature an auditor that should be put into place 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 end-to-end its travels among the company. The purchasing agent should not be making any payments for the goods he/ she purchases. The purchasing agent should! be able to do it purchase orders that are pre-numbered and maintain the purchasing of goods and services only. The accounting should be segregated as well. An accountant will monitor the payment of invoices to all vendors authorized by purchase orders issued by the purchasing agent. This person will hold 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: BestEssayCheap.com

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