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Unformatted text preview: Separate recordkeeping and custody over assets. They should hire another employee to the recording while Heather handles receipts from customers. cjw 1. Divide Responsibility for Related Transactions 2. Establish Responsibilities Establish responsibilities. Divide responsibility for related transactions. Set a rule that there will be no petty cash payments when Jeff is at lunch. If that is not possible, Jeff and Jose should count the cash together when Jeff goes to lunch and when he returns that way it can be established who paid what out and if the books balance properly during Jose's shift. 3. Apply Technological Control Safeguard assets. It kind of defeats the purpose if the computer and back-up tape are in the same room. In case of a fire, both the computer and back-up tapes would get destroyed. The back-up should be in a separate location. 4. Establish Responsibilities and Perform Regular and Independent Reviews Perform regular and independent reviews. Barto should perform regular and unnannounced reviews to ensure that his instrusions are being followd and controls are being adhered to. He should also bond several of his employees. 5. Insure Assets and Bond Key Employees Establish responsibilities and bond employees. Desi should not decide by herself to raise the deductile. She should just submit the proposal to do so to her manager and let management decide if it is the right thing to do. In addition, she should reinstate the bond on the employees. Inoke Gallery Inoke Gallery Journal Entry for Petty Cash Journal Entry for Petty Cash For the Month of February For the Month of February Date Entry Debit Credit 2 Date Entry Debit Credit 1 Feb 02 Petty Cash $300.00 Cash $300.00 Feb 23 Delivery Expense: Customer's package delivered $18.00 To establish a petty cash fund Feb 14 $58.00 3 Feb 28 Delivery Expense $18.00 Feb 12 Postage Expense: Paid postage $9.95 Mileage Expense $58.00 Feb 27 Postage Expense: Paid postage $64.00 $73.95 Postage Expense...
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This note was uploaded on 02/21/2012 for the course ACC 225 acc 225 taught by Professor Unknown during the Spring '10 term at University of Phoenix.
- Spring '10