Assignment Internal Cash Control Essay Example for Free

Assignment Internal Cash Control set aboutThe weaknesses in the inner(a) manoeuvre over notes disbursements are, there should be only one someone in charge of writing the checks for each task, and there should be numbered checks for both people so that the currency spend seat be tracked easier, the cabinets were the checks are stored should be two locked cabinets, one for each psyche who writes the checks. Memo I would recommend that to have a better control over bullion paid and items purchased, that you start having numbered checks in two separate accounts, one account for the treasurer and one account for the buy agent. This method will claim it easier for moth parties to avoid mistakes, and it will also be easier to verify money pass and received. P4-1A The internal control principles implemented by the Guard Dog Company are, numbered checks so that the order has a number trail to monitor cash dispersment. Each check must have approval from Jane Bell, and Dennis Kurt beforehand a check cornerstone be issued, this is an establishment of responsibility to ensure that non just anyone ion the political party can write checks.Checks must be signed by either Tom Kimball, the treasurer, or Karen Thews, the athletic supporter treasurer. Before sign a check, the signer is expected to compare the amounts of the check with the amounts on the invoice, this is also a form of establishment of responsibility and both of these procedures are a use of keep procedures. After signing a check, the signer stamps the invoice paid and inserts within the stamp, the date, check number, and amount of the check. The paid invoice is past sent to the accounting department for recording.By doing this it is a bearing of collateral caller-out cash dispersment and catalogarithmueation control. Blank checks are stored in a preventive in the treasurers office. The combination to the adept is known by only the treasurer and assistant treasurer. By locking the c hecks in a safe it establishes responsibility for the checks, and uses a Physical, mechanical, and electronic controls to narrow down any check problems to one source. Each calendar month the bank statement is reconciled with the bank balance per books by the assistant chief accountant.By doing this it establishes document control, this way any discrepancies in the amount paid can be verified. Indicate the weaknesses in internal accounting control in the handling of collections. The weaknesses in the handling of collections are the way the money is deposited, the way the checks are made out and the way the money is verified and deposited. P4-2A List the improvements in internal control procedures that you plan to make at the next meeting of the audit team for (1) the guidebooks, (2) the head usher, (3) the fiscal secretary, and (4) the pay committee.The improvements the ushers need to make is that after each offering they should individually count their own collected baskets and log there amount in an offering log book, so that there is less room for erroneousness in the next step. By handing all the baskets to the head usher without counting the money themselves, the head usher can offer any amount on his final deposit. The improvements the head usher demand to make is to make sure that each usher counts their baskets, and that the head usher counts all the baskets and checks for discrepancies to make sure that no one is pocketing any money.The head usher should also check the amount given to him/her against what is written in the offering log. Have a book to log the amount of money that is put into the safe so that it is logged in a way that can be verified by the committee, a note is not a safe method because it can be thrown out, by logging in a book it is easier to find were the discrepancies came from. The improvements the financial secretary should make is that he/she should have a list of what needs to be paid and make a log of the amounts that ne ed paid and to make sure the gross are logged along with whatever bills or services that needed to be paid that week.The financial secretary should also verify the amount of money in the safe against the log that is kept by the ushers. The financial committee should show a more detailed list of what wasting diseases are needed each month so that the financial secretary knows what is needed for payment that month. They should also be involved in verifying the churches income. To improve internal control the church should have a log for money received during offerings, they should discern the congregation to make the checks payable to the church or to the account holder that the checks are deposited into, because anyone can cash a check made out to cash.The church should also verify that any money not deposited from the offering was spent properly and not used for personal things. Include how a partnership could use the five basic principles of cash management to increase accuracy for a business. A company can increase the collection of receivables by offering incentives for quick payment from their customers. A company can delay the payment of liabilities and bills to close to the due date of the liability or bill, so that if any expenditure is needed before the due date they will not have spent the money excessively early.A company can keep inventory low on the merchandise that does not allot quickly, so that the company has money for the merchandise that is popular and selling fast. A company that wish to dramatize should wait until they have excess money in a slow season so that they can expand their business and have new locations open in time for their busy season. A company should invest money that is sitting idle into low risk companies, the most common form of fluid investments is interest-paying U. S. government securities.