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Internal Cash Controls Assignment

Internal Cash Controls Assignment - Assignment Internal...

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Assignment: Internal Cash Control Cathy Bandelow Survey or Accounting: The Maze of Numbers/ACC 220 May 2, 2010 Sophia Wilks
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Scenario E4-5: The weakness in internal control over cash disbursements in the scenario is that a lax system is in place. First off, checks need to be numbered. A log kept of each check and who is responsible for issuing that check. A series of checks issued to each individual be entered by an individual, preferably a manager. Once the manager has the checks entered onto the log, a second individual (an assistant) would verify the information. This may be performed also with the assistant entering information and the manager verifying. Secondly, blank checks need to be kept under lock and key. A log book should be maintained and an entry made daily as to whom opens the locked drawer and removes the checks. Thirdly, the bank reconciliation should be completed by someone that is not involved with the check approval or payment process. The purchaser and the treasurer should not complete the reconciling. Lastly, the paid bills would be easier to locate if filed initially under the vendor, then sub-file under date paid. This system would allow an easier and quicker way if a bill needs to be researched.
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