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Unformatted text preview: E4-5The weaknesses in internal control over cash disbursements for Idaho Company are: there are no numbered checks that can be verified through the bank account. The fact that the treasurer has control over writing checks to pay bills and able to verify and reconcile the paid invoices without any checkpoints in place. There are more than one person who authorizes the treasurer to make these payments is also a concern. The purchasing agent pays the bills for supplies received by vendors. The purchasing agent also verifies receipt of the goods and then verifies accuracy of the invoice before making payment to vendors. The vendor then files the invoice and the purchasing agent reconciles the cash journal. There should be several people involved in the control of the accounting of the cash books. There should be a separate person to file the invoices, a separate person to reconcile the cash books. The checks should be numbered to have control of what goes in and out of the account. The checks should also be in a locked cabinet so that there in and out of the account....
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- Spring '10