acc - 220 - week 4 Internal Cash Contro1

acc - 220 - week 4 Internal Cash Contro1 - Internal Cash...

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Internal Cash Control E4-5 (a) List the weaknesses in internal control over cash disbursements. There are various troubles with internal control of currency payments within the Idaho Company. For the safety of the company, the checks are in a fireproof safe. For accounting proposes all checks should be pre-numbered. I believe that no one on the bank account needs to have right to use to the plain checks and submitting information in the currency payments journal. If a signor at the bank happens to be the treasurer, all he should do is assess the checks for correctness. The treasurer should not have accountability for approving disbursing payment for invoices or any other statements. With this, it can guarantee that no one can exploit currency for individual use or commit fraud. (b) Write a memo indicating your recommendations for improving company procedures. INTEROFFICE MEMORANDUM TO: DAVID SMITH, TREASURE AND RICHARD KING, PURCHASING AGENT FROM: DOROTHY SCHIMME, PRESIDENT SUBJECT: NEW INTERNAL CONTROL PROCEDURES DATE: 12/12/11 CC: It has come to my attention that our accounting firm needs to improve our internal cash disbursements. I have come up with some suggestion that include the following: 1. Having checks pre-numbered 2. Securing all blank checks in a fireproof safe
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3. Having only one individual per post payment 4. Having one individual issue out checks 5. Having one individual submitting the checks in the currency payment journal 6. Having one individual sign the checks The account has suggested that a different individual to more efficiently track responsibility and errors should perform each aspect of cash disbursements. I would be grateful to hear from both of you within the week that way we can possibly set up a meeting to additional confer this matter and set up new measures to guarantee the security of our resources and correctness of the record keeping. If there is any way, I would like to see the procedures in place
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