week 3 dis 2 - is Dean Leiser This should not be acceptable...

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Judgement Case 7-5 1. The apparent internal control weakness is because John only submitted the list of the accounts and amounts to charge to replenish the petty cash fund. Before John submitted the documentation, he is also supposed to have it reviewed by someone else. To ensure the funds are maintained on an imprest basis, there also are surprise counts. For this is to also ensure the receipts or cash equals $200 every time. 2. The sufficient separation of duties is not helpful for the internal control system for the disbursements, so this is why two people need to be involved. The only person who approves the vouchers, signs the checks, maintains the disbursement records and reconciles the bank account
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Unformatted text preview: is Dean Leiser. This should not be acceptable because there needs to be someone else involved in the activities. This is so there is accuracy and more of a safeguard from expropriation. 3. Like before, the sufficient separation of duties is not helpful for the internal control system for the disbursements, so this is why two people need to be involved. The duties need to be separated by Fran. He has the control of the deposits and subsidiary ledger for the accounts receivable. Another noted sign, the company needs to make it a point to have the customers pay by check and no use the cash....
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