Melissa - Week 4 Assignment – Internal Cash Control

Melissa - Week 4 Assignment – Internal Cash Control

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Week 4 Assignment – Internal Cash Control 1 Week 4 Assignment – Internal Cash Control Melissa Krol Acc - 220 February 19, 2010 Instructor: Milton Robinson Axia College of the University of Phoenix
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Week 4 Assignment – Internal Cash Control 2 Week 4 Assignment – Internal Cash Control E4-5 (a) List the weaknesses in internal control over cash disbursements. The Idaho Company has many problems with internal control of cash disbursements. The check should be pre-numbered to ensure nothing is missing and the checks should be under lock and key in a fire proof cabinet. The signers on the bank account should not have access to the blank checks and should not be issuing checks or entering the transactions in the cash disbursements journal. If the treasurer is a signor on the bank account that is all he should do is review the checks for accuracy and sign the checks, he should have no responsibility for authorizing payment for invoices or other bills. This will ensure that no can use cash for personal use or embezzle. (b) Write a memo indicating your recommendations for improving company procedures. INTEROFFICE MEMORANDUM TO: JOHN JACOBSON, TREASURE AND MARK ANDERSON, PURCHASING AGENT FROM: MELISSA KROL, PRESIDENT SUBJECT: NEW INTERNAL CONTROL PROCEDURES DATE: 9/7/2010 CC: It has been recommended by our accounting firm that we need to improve our internal control on cash disbursements. The suggestions made by the accountant are: 1. Pre-numbered checks 2. Keeping blank checks in a secure location 3. One person post payment 4. One person issue checks
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Week 4 Assignment – Internal Cash Control 3 5. One person enter the checks in the cash disbursements journal 6. One person sign checks The account has suggested that each aspect of cash disbursements should be performed by a different individual to more efficiently track responsibility and errors. I would appreciate hearing from both of you within the week so we can set up a meeting to further discuss this issue and set up new procedures to ensure the safety of our assets and accuracy of the record keeping.
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This note was uploaded on 09/06/2010 for the course ACC 220 acc-220 taught by Professor Unknown during the Spring '10 term at University of Phoenix.

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Melissa - Week 4 Assignment – Internal Cash Control

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