Internal Cash Control Essay Example | Topics and Well Written Essays - 750 words

Internal Cash construe - Essay ExampleOn the other hand, both the buying agent and financial officer unfreeze keep expenditures for expenses without each others accountability there is a likelihood of fraud taking em discoverment because only one person grants authority for payments. Q4.5 (b) memo indicating recommendations for improving company procedures From Your NamesXXX To Idaho Company Management hooked Internal Cash Control Weaknesses Date 23 April, 2012 With the existing gap in the internal money control of the organization, there is a need to introduce internal control principles of cash management to development accuracy in the flow of cash and close the gap that exist. Because of the lack of a safe place to keep the company checks, it is necessary to introduce a new safe file cabinet that is lockable with plan of attack by only the treasurer or the purchasing agent. In addition, cash registers to record the checks issued in erect of the numbers in the checkbook should be introduced to avoid problems with numbering of checks issued and received (Kimmel, Weygandt & Kieso, 2011). Above all, different individuals should authorize, issue and verify checks so as to avoid fraud committed when issuing checks for expenses therefore, the treasurer and the purchasing agents should non be the only ones authorizing, signing and issuing checks for expenses incurred. ... As a result, guard duty heel Company has managed to initiate the internal control principles in its purchases and payment. There are five principles of the cash disbursement including the establishment of responsibility in within cash disbursements as the designated personnel that include the treasurer, and assistant treasurer is authorized to handle checks (Kimmel, Weygandt & Kieso, 2011). In addition, there are different individuals including the treasurer and assistant treasurer who esteem the payment of the expenses through checks as they hold them and stamp the invoices once paid . There is segregation of duties between purchasing agent, receiving department supervisor, treasurer and assistant treasurer because there is no approval of payment in checks without their authorization. Finally, Guard Dog Company has kept in place the physical, electronic and mechanical controls in place (Kimmel, Weygandt & Kieso, 2011). This is because, there is safe storage of checks in the safe whose particulars are limitedly held only by the treasurer and assistant treasurer and they use cash registers to register the issuance of the numbered checks that are used. In addition, the fact that the assistant chief restrainer carries out the reconciling of checks ensures transparency. Q4-2A. Indicate the weaknesses in internal accounting control in the handling of collections. In the handling of church collections, several weaknesses exist in the procedures followed as the ushers who assist on a willful basis do not guarantee the fact that they cannot take some of the church coll ections. In addition, the chief usher who counts the offering alone and works on a voluntary basis is also presumable to commit fraud by taking some of the collections without anybodys knowledge (Kimmel, Weygandt &