Andre Young ACCT 504 Case Study 2
Andre Young ACCT 504 Case Study 2
1. Establishment of responsibilities. Only one person handles all the finances and the petty cash is open for just about any one to manage and handle cash. Need to be retuned to no one can handle petty cash but a public accountant.
2. Segregation of duties. Their has to be some one overseeing every one in the company. Their has to be some one over seeing the accountants, the checks being written and some one controlling the petty cash. People are usually not honest and faithful about what money is being taken out.
3. Document procedures. Every thing has to be documented. Checks has to be written by ink able printer that issues serialized checks from the company. These checks can be traced and cash and expenses can be tracked. Some one has to be responsible for the petty cash, it can be easy to steal from the company.
4. Physical Control. The company uses a safe to safe guard checks held over the weekend that is over seen by the accountant. I think that this is not suitable enough. Some one differently needs to over see this procedure.
5. Independent internal verification. Every thing that is financial related is handled by one person. Some one else needs to be there to over see other finances to make sure that no one is taking anything from the company.
2. What the company is doing is starting to stream line the operations and number invoices. That is a good start but because one person handles most of the company finances it would be knowledge to have a machine that makes pre serialized checks. These checks would be very helpful for the company in terms of revenue and expenses. The company can trace where all the money is coming in and going out and who wrote the checks. The best thing that can be done is to purchase a machine because the company needs to make sure that it is on point for all its finances, in the second paragraph it clearly stated that only one person is overseeing all the financial
1. Establishment of responsibilities. Only one person handles all the finances and the petty cash is open for just about any one to manage and handle cash. Need to be retuned to no one can handle petty cash but a public accountant.
2. Segregation of duties. Their has to be some one overseeing every one in the company. Their has to be some one over seeing the accountants, the checks being written and some one controlling the petty cash. People are usually not honest and faithful about what money is being taken out.
3. Document procedures. Every thing has to be documented. Checks has to be written by ink able printer that issues serialized checks from the company. These checks can be traced and cash and expenses can be tracked. Some one has to be responsible for the petty cash, it can be easy to steal from the company.
4. Physical Control. The company uses a safe to safe guard checks held over the weekend that is over seen by the accountant. I think that this is not suitable enough. Some one differently needs to over see this procedure.
5. Independent internal verification. Every thing that is financial related is handled by one person. Some one else needs to be there to over see other finances to make sure that no one is taking anything from the company.
2. What the company is doing is starting to stream line the operations and number invoices. That is a good start but because one person handles most of the company finances it would be knowledge to have a machine that makes pre serialized checks. These checks would be very helpful for the company in terms of revenue and expenses. The company can trace where all the money is coming in and going out and who wrote the checks. The best thing that can be done is to purchase a machine because the company needs to make sure that it is on point for all its finances, in the second paragraph it clearly stated that only one person is overseeing all the financial