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This occurs at Guard Dog because the reconciliation is conducted by the assistant chief accountant, not the treasury. There are other controls as well that are consistent with the principles of internal control of cash. The invoices are stamped "PAID" when the check has been issued, for example. Also, in each key department there are two individuals, which allows each individual to take vacations. The checks are compared to the invoices before they are issued. By doing all of these things, Guard Dog is following the principles of internal control of cash disbursements well.
4-2A. a) There are several weaknesses in the internal control. The head usher counts the money unsupervised; financial management and audit is conducted by the same group; regular audits are not conducted; only one employee keeps records; the financial secretary conducts reconciliation and audits; the church lacks fidelity insurance; the financial secretary also counts the cash unattended; checks are made payable to "cash"; there are no controls on minor disbursements and little record keeping of such transactions.
A b) I would recommend the following improvements. For the ushers, they should remain with the head usher while the count is made. Moreover, because ushers handle cash they should not be volunteers who are constantly rotated. They should be trusted individuals. Checks should...
Ushers should work in teams of two unrelated individuals. The head usher should conduct the count with the ushers present. The financial secretary should be subject to fidelity insurance. This person should be spelled off for vacation every year. Additionally, this person not count the collections if they are to handle disbursements. The financial secretary should need approval for the petty disbursements they make. The financial secretary should not perform reconciliations. The finance committee should undertake more oversight into petty disbursements made by the financial secretary and demand records be kept of these. The finance committee should hire an auditor to conduct the reconciliation.
A c) the policies I would change would be to have checks made out to the church, not to cash. I would segregate the duties better - splitting disbursements from reconciliation, for example. I would also reconsider the policy of rotating volunteer ushers in favor of more stable workers. I would force the financial secretary to take an annual vacation. The policy of not having insurance I would also change. I would institute regular audits by a party not otherwise involved in internal cash controls. Lastly, I would involve the financial committee in both collections and recordkeeping, so that they are involved in all aspects of the church's finances.
The CEO of ENRON attempted to give a rosy picture of the company financial position to protect his own investment in company shares. As a part of internal control, the accounting function and actual physical stocks should not be managed by the same person. This removes the temptation of cooking the books and allowing the stock to disappear without anyone noticing the fraud. Protecting computer records through limiting access to accounting
Internal Control and Accounting Analysis of ABC Limited: Analysis of Weaknesses and Recommendations The report was prepared to cover the requirements of the AAT ICAS unit. The AAT ICAS refers to an Internal Control and Accounting System where the report serves as investigation of the weakness area of the business control and makes the recommendation to fix this problem. The following report reviews the restaurant business particular in payroll area. The
" The determination for marketable security with respect to disproportionate distribution is accomplished by reducing the amount of marketable securities that is treated as money using the following steps: 1. The excess of the partner's share of net gain that would be recognized if all securities of the type distributed held by the partnership immediately before the transaction were sold at fair market value over 2. The partner's share of gain that would
Internal Control Frameworks Compliance models. Internal controls are processes that are designed to offer reasonable levels of assurance that objectives can be met in several important areas, including the reliability and security of financial reporting, the efficiency and effectiveness of operations, and legal and regulatory compliance. Many versions of compliance models exist that can serve as the foundation for organizational compliance initiatives. These compliance models are more suitable for certain industries
Presently, the Red Line consists of three segments Downtown LA, Wilshire Center and N. Hollywood and the total coverage is 17.4 miles. Apart from this, the review identified the possible financial and schedule risks. It was inferred that the cost and completion schedules were justified; however funding risks were present for the North Hollywood segment. Apart from that, MTA's overall finances and the operating budget shortfalls might impact the
personal cash management policies and practices. The paper starts with by stating the methodology through which the content was collected for the relevant literature in the paper. The paper then presents a clear definition of what cash management is and presents an overview of some of the most utilized personal cash management practices. The literature review also presents numerous internal cash management policies and practices that can prove to