ACC 220 Week 4 Assignment Internal Cash Control

ACC 220 Week 4 Assignment Internal Cash Control - Scenarios...

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Scenarios of Cash Management 1 Assignment: Internal Cash Control
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2 Scenario E4-5 a) These are the following weakness I have interpreted from the above scenario: a. There were no detailed operating procedures. Even though the purchasing agent and treasurer both had authority at issuing checks, checks could be utilized for payments, resulting in errors if unnumbered and no procedure is followed. b. No established procedures that address a segregation of duties exists either in regards to preparing and mailing the checks. c. The system has a general ledger, yet no subsidiary records of accounts receivable and accounts payable exists. The checks are also not secured in a limited access area under lock and key. d. Financial reports and other documentation in the cash disbursements journal are not ensuring that the distribution of the charges is appropriately based. e. No receipts are given to each individual that is paid by check. Notations are made on a summary sheet only. b) In order to improve your company, I recommend that you detail operating procedures, outlining both the purchasing agent and treasurers responsibilities, roles, and proper procedures of handling and issuing checks. Segregation of duties must be outlined as well. Also, preparing subsidiary records of accounts receivable and accounts payable allows for proper documentation of funds. Receipts should also be given to each bill that has been stamped as paid. Finally,
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This note was uploaded on 01/24/2012 for the course ACC 220 ACC 220 taught by Professor Black during the Spring '11 term at University of Phoenix.

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ACC 220 Week 4 Assignment Internal Cash Control - Scenarios...

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