Internal Cash Control

Internal Cash deem ACC/220 January 2, 2010 Alicia Hubbard Internal Cash Control There atomic pattern 18 many another(prenominal) weaknesses in the internal change control everywhere the cash disbursements of the Idaho lodge scenario. Having an individual with multiple responsibilities will ready weaknesses in the corporations control over cash disbursement. The company is using un-numbered checks that ar accessed by more than 1 employee. The checks are non locked up, so they are liable to be stolen by an unethical employee. The invoices are not cosmos corroborate for accuracy front to being nonrecreational and filed. There are too many employees with authorization to issue checks without having a aright record holding system of them. The company should make up pre-numbered checks with entirely one employee to have access to them. The checks should require two signatures. The bug out divisor and the financial officer should twain verify the accura cy of the trafficker bills onwards issuing payment. The invoices should not except be stamped as paid but also dated and the check number and authorizing name calling should be recorded on the invoice as soundly.

By creating a paper trail of checks and balances, as well as segregating the different duties and responsibilities, leaving each individual accountable for a certain set of duties, it would be easier to keep booster air of what each employee was doing. It would help to deter takeoff, theft and misconduct of the employees. memo to staff: Effective immediately, the company will use pre-numbered checks , but issuable by the treasurer. They will ! require the signature of the purchaser and the treasurer. The treasurer will have key control of the filing shop locker as well as the verification responsibility of the invoices. in all vendor bills will be support by both the purchaser and the treasurer. All invoices will be verified by purchaser and treasurer and initialed before being stamped and filed. By using the steps of establishing responsibility and segregating duties, it would deter fraud and theft....If you want to get a full essay, order it on our website: OrderCustomPaper.com

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