Internet Cash Control Acc220

Internal Cash Control Throughout the last couple of chapters, we make up learned more about the inborn interchange management systems that can be limit in gift in roll to attend companies trace the bills flow as tumesce as created depictability within the keep comp whatsoevers workforce. These principles can help change companies internal procedures by adding expensive steps to ensure the risklessty of the companys money. The scenario abandoned in problem E4-5 has multiple weaknesses in interpret to cash flow. The first one that I saw was Idaho participation did non have pre-numbered checks. For accountability and tracking, all checks, packing slips and invoices demand to be pre-numbered. Also the authorized signers on the checks had access to the checks because the checks be in an unlocked file cabinet. The second major negligence that I saw was the acquire agent paid for the goods bought as well as coiffeing. This job duty does not single o ut duties to help protect the companys money. In deference to the insulation of duties, the procurer should not be recording expenses in a journal. The financial officer should not be making fees and relegate 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 sho! uld be able to bring out purchase orders that are pre-numbered and maintain the purchasing of goods and services only. The news report should be segregated as well. An accountant will contend 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: BestEssayCheap.com

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