Internet Cash Control Acc220

Internal Cash Control
Throughout the last couple of chapters, we make up learned more about the internal interchange management systems that can be limit in gift in roll to attend companies trace the cash flow as tumesce as created depictability within the companys workforce. These principles can help change companies internal procedures by adding expensive steps to ensure the safety of the companys cash.
The scenario abandoned in problem E4-5 has multiple weaknesses in regard to cash flow. The first one that I saw was Idaho Company did not have pre-numbered checks. For accountability and tracking, all checks, packing slips and invoices need to be pre-numbered. Also the authorized signers on the checks had access to the checks because the checks are in an unlocked file cabinet. The second major default that I saw was the acquire agent paid for the goods bought as well as ordering. This job duty does not segregate duties to help protect the companys money. In regard to the insulation of duties, the procurer should not be recording expenses in a journal. The treasurer should not be making fees and reconcile the checking account as well. This does not feature an auditor that should be put into place in order.



If an auditor was present the treasurer would be limited in the cash flow and not be able to steal from the company.
Idaho Company should have pre-numbered documents in order to be able to track all paperwork throughout its travels among the company. The purchasing agent should not be making any payments for the goods he/she purchases. The purchasing agent should be able to issue purchase orders that are pre-numbered and maintain the purchasing of goods and services only. The accounting should be segregated as well. An accountant will oversee the payment of invoices to all vendors authorized by purchase orders issued by the purchasing agent. This person will hold all cash and checks. wholly checks are to be pre-numbered and locked in a safe place with...If you want to get a full essay, order it on our website: Orderessay



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