Internal Cash Control - Internal Cash Control 1 Week 4...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Internal Cash Control 1 Week 4 Assignment – Internal Cash Control Denise Keith ACC / 220 February 14, 2010 Teri Moore
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Internal Cash Control 2 Many companies have issues with their cash handling procedures. They do not know how to track where their cash is going, nor do they know how to regulate the procedures involved. So, what are the correct cash handling procedures? The following examples will show how some companies currently handle their cash, and various ways these principles can be improved. In the first scenario, at Idaho Company, there are eight weaknesses in internal control that deal with cash disbursements. 1 WEAKNESS CORRECTION 1.Checks are not numbered Checks should be pre-numbered in sequential order 2. More than one person is authorized to sign checks Only one person should be authorized to sign checks. 3. Purchasing Agent pays bills and records them These duties should be segregated to different individuals 4. Un-issued checks are kept in an unlocked drawer Unsecured blank checks should be locked in a safe that has limited access 5.Treasurer pays bills and records them These duties should be segregated to different individuals 6.Treasurer reconciles checking account Treasurer should be only be responsible for reconciling the check book 7. Purchasing Agent approves bills for payments that he makes These duties should be segregated to different individuals, no one person should be in charge of doing both jobs
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/19/2010 for the course ACC 220 90 taught by Professor K.lcavanagh during the Spring '09 term at University of Phoenix.

Page1 / 5

Internal Cash Control - Internal Cash Control 1 Week 4...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online