Assignment Internal Cash Control Essay

The weaknesses in the internal subdue over cash disbursements be, in that location should be only one person in charge of writing the tablets for each task, and there should be numbered collapses for some(prenominal) people so that the funds spend can be tracked easier, the cabinets were the checks ar stored should be ii locked cabinets, one for each person who writes the checks. Memo I would recommend that to puddle a better control over property pay and items purchased, that you start having numbered checks in two separate ac figurings, one account for the financial officer and one account for the purchasing agent.This method will make it easier for moth parties to avoid mistakes, and it will excessively be easier to verify money spent and received. P4-1A The internal control principles implemented by the Guard Dog confederacy are, numbered checks so that the company has a number trail to monitor cash dispersment. Each check must stimulate approval from Jane Bell, a nd Dennis Kurt before a check can be issued, this is an establishment of responsibility to hold back that not just anyone ion the company can write checks.Checks must be signed by totally Tom Kimball, the treasurer, or Karen Thews, the retainer treasurer. Before signing a check, the signer is expected to compare the numbers of the check with the joins on the invoice, this is also a form of establishment of responsibility and both of these procedures are a use of documentation 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 then sent to the ac computation department for recording.By doing this it is a way of sustain company cash dispersment and documentation control. Blank checks are stored in a safe in the treasurers office. The combination to the safe is known by only the treasurer and assistant treasurer. By fix the checks in a safe it establishes respo nsibility for the checks, and uses a Physical, mechanical, and electronic controls to narrow down any check problems to one source. Each 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 make the improvements in internal control procedures that you plan to make at the next meeting of the audit aggroup for (1) the ushers, (2) the brainpower usher, (3) the financial secretary, and (4) the finance committee.The improvements the ushers need to make is that after each offering they should individually count their own collected baskets and record there amount in an offeri ng lumber book, so that there is less room for error 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 needs 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 need paid and to make sure the receipt s 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 expenditures are needed each month so that the financial secretary knows what is needed for defrayal 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 tell 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 in the flesh(predicate) things. Include how a company could use the five basic principles of cash management to increase verity 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 too early.A company can keep inventory low on the merchandise that does not sell quickly, so that the company has money for the merchandise that is popular and selling fast. A company that wish to expand should wait until they have excess money in a easily season so that they can expand their business and have new locations open in age for their busy season. A company should invest money that is sitting idle into low risk companies, the just about common form of liquid investments is interest-paying U. S. government securities.