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Essay example - Internal Cash Control
Finance & Accounting
Pages 3 (753 words)
Internal Cash Control Name Institution Internal Cash Control Q4.5 (a) weaknesses in internal control over cash disbursements Even though, there is segregation of duties between the treasurer and purchased agents there is still internal control weaknesses over cash disbursements at Idaho Company…
Extract of sample
On the other hand, both the purchasing agent and treasurer issue check disbursements for expenses without each other’s accountability there is a likelihood of fraud taking place 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 Subject: Internal Cash Control Weaknesses Date: 23 April, 2012 With the existing gap in the internal cash control of the organization, there is a need to introduce internal control principles of cash management to increase 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 access by only the treasurer or the purchasing agent. In addition, cash registers to record the checks issued in order 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 not be the only one’s authorizing, signing and issuing checks for expenses incurred. ...
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