BY8-5 - After sending the checks and list to the cashier...

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Dear Mr. Mays, After reviewing your company’s Internal controls regarding mail receipts I have determined that the following controls are not put into place: Establishment of Responsibility, Segregation of Duties and Independent Internal Verifications. Your company has a very high probability of miss handling of receipts and inaccurate accounting. I recommend the following actions be considered for future transactions. When Checks are received, one person should be designated to open the mail and collect the checks, with at least two witnesses. One clerk should stamp each check “for deposit only” and they should prepare at least two list of each check with identify information and both should be signed by a different clerk to establish responsibility.
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Unformatted text preview: After sending the checks and list to the cashier responsible for the daily deposits, they should add it into the daily cash receipts. After the cash and checks are accounted for, another employee should deposit the money into the bank. A manager or other qualified employee should do periodic checks of accounts receivables and amount the bank has annotated as received. These internal controls will help ensure that customer’s accounts are being correctly credited and employees are handling mail receipts properly. In addition to these controls rotating clerks, bonding employees and background check can also help safeguard against theft. Lachele Hardic CPA for Croix, Marias and Kale...
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