BBA 2201-19S-SU21L-S2, Principles of Accounting I Unit 6 Journal.docx

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Unformatted text preview: Instructions Reflecting on the information presented in this unit, if you were the owner of a jewelry store, what type of internal controls would you implement? Why? Your journal entry must be at least 200 words in length. No references or citations are necessary. (59) Columbia Southern University Principles of Accounting I (#BBA 2201) Professor Marcia Rose Jason Rodarte-Thies Accounting is often referred to as the language of business. Overall the general populace fails to realize all the different aspects that go into running a business especially in today's society. So many things are very pivotal in determining the success or failure of that company or organization, one of which is the most vital is accounting. However, within that is a very key subset which in turn runs hand-in-hand with the accounting process of a business or organization. This key subset is often referred to as internal control. In this journal entry, will be referencing a jewelry store from the standpoint of the owner/operator. What type or types of internal controls would need to be implemented, and why? Internal control is often referred to as by definition: the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. Internal control policies and procedures are very vital to running and/or operating any company or organization to its utmost potential. As it pertains to a jewelry store concerning internal control rules and/or procedures, is even more pertinent considering the extreme dollar value of the goods and services provided. One way of controlling inventory as well as implementing internal control regulations, is to keep every case containing jewelry locked, with only authorized personnel having keys to them. Any jewelry not in locked display cases, should be kept locked in a vault. The cashier should be the only person with access to the cash register, or handling money of any kind. Another individual preferably the owner/operator, or another appointed authorized personnel should check the cash every night to make sure it matches the cash receipts. Pre-numbered sales forms should be used to ensure that no sales are misappropriated. Segregation of duties is also essential, and must be clearly outlined with any and all personnel. The sales person should write up the sale, then hand it over to the cashier for the customer to pay. These are just a few ways to implement the use of internal controls, and hopefully intern minimize losses and or issues in the process. ...
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