Essay on Assignment Internal Cash Control

If some research is undertaken that provides evidence that capital markets do not always behave in accordance with the Efficient Market Hypothesis, does this invalidate research that adopts an assumption that capital markets are efficient?

It follows a strong internal control system for cash. A separate person is appointed to approve all purchases, payroll and any disbursement of cash. At the end of each month company prepares bank reconciliation statement to reconcile cash book balance and bank statement balance. Company keeps proper inventory record system. All these prevent frauds and ensure smooth functioning of the business.

Operations is separate from the accounting department. The employees in operations handle promoting the products. Also, Operations is in charge of making the products. The company’s accounting system is handled in-house by the cashier and the bookkeeper and by the accounting firm hired to handle the businesses’ financial reporting. The cashier handles all sales through the register. The register is balanced against the drawer each night by the bookkeeper and a deposit made the same day. The bookkeeper gives the accountant the drawer receipts and bank receipts for journal entries and later reports. The accountant checks all cash received and payments made against bank statements and collected paperwork. There is not a single person assigned to do all duties.

17. Which of the following is not a procedure for control of cash payments? A. B. C. D. Checks should be properly authorized with approval signatures. The business should provide written

With every internal control weakness a company needs to identify either a control policy or control procedure that will help prevent error or fraud from occuring in the future. Based on my suggestions as to what weaknesses existed at Goodner Brothers, Inc. I have suggested the policies or procedures that could be implemented to help prevent future issues. The internal control I would implement to hinder employee access to the accounting system would be to secure all computer programs with individual usernames and passwords to prevent access from others. The bookkeeper should be the only employee with access to the accounting system and to test this procedure the company would need to try and access the software without a username and password. To monitor the storage warehouse situation, the company should install computer scanning systems and video cameras at each location to supervize whether tires are being scanned in and out upon delivery and pick-up and to determine who and when these transactions are taking place. Semi-annual reviews should be conducted by sales managers to evaluate their sales representative. In addition, strengthening the tone at the top mentality should lie in the hands of each owner by personally reviewing all sales managers to create a top down effect.

To conduct the audit, the firm must acquire sufficient understanding of the internal control processes to help determine the nature and timing of the audit. However, the audit is not designed to identify deficiencies in internal control or provide assurance. The firm will make the audit committee aware of any significant deficiencies that come to Anderson, Olds, and Watershed’s attention during the audit.

By implementing and maintain multi-person checking systems, physical and electronic barriers and only allowing the minimum number of necessary people access to areas, cash and the ability to do certain tasks it helps ensure the safety of the company's assets. Different employees in the accounts department having checks in place to confirm balances match ensures that cash and equivalents are

The company should also focus on the segregation of duties in the organization so as to have proper distribution of the duties. The company should also focus on managing the cash properly. The company should also focus on prenumbering the documents and the check as it will help in reducing the likelihood of the unauthorized transactions and embezzlements, all the documents should be accounted in sequence periodically.

On October 28, 2015, Manuela brought the candy to school and gave it to Abena in the Marketing class. Abena kept half of the candy to prepare and Manuela kept the other half each of them spent an hour bagging the candy and putting some tags. On November 1, 2015, we spent 5 hours from all the team members started to arrive at Abena house between 11:30 am – 12:00 pm. Manuela started taking out the goodies bags out of the car while Abena went to the kitchen and got the rest of the goodies bags. Tenia and Augustina started setting up the plastic bags with the goodies bags inside that we were going to go. We all gather our rain coats and umbrellas and started walking around Abena’s neighborhood and we started knocking doors and selling the bags from 12:15pm -2:30pm. On November 2, 2015 we spent an hour, we had a meeting to discuss the fundraising paper part 2 and PowerPoint around 8:00am-9:00am. On November 4, 2015 Manuela spent 1 to 2 hours selling the baby girl clothes that her sister in la gave her. On November 9, 2015 we had a 10 minutes meeting to collect all the money that Abena and Augustina had sold on their side. Manuela, Abena, Tenia and Augustina spent a total of 3 to 5 hours selling the bags individually including one virtual meeting

Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.

Adequate speed of updating information and open lines of communication are important for all companies. However, slow reactions are causing control deficiencies. Regional employees are allowed to issue disbursements that would take too long for the home office to make, but these transactions draw from accounts with an unknown balance, and they have no

In terms of the confirmation of cash balances, what deficiencies can you identify in terms of the procedures

1. A brief history of the two organisations, and their objectives, in as far as they

The management of cash is essential to the survival of any organization. Managing an organization’s financial operation requires knowledge of the economy and ways to maximize revenue. For any organization to operate on a daily basis adequate cash flow is required. Without cash management the organization will be unable to function because there is no cash readily available in case of inconsistencies in the market. Cash is also needed to keep the cycle of the company’s operations going.

Additionally, we recommend the segregation of duties, where different individuals receive the mail cash, record the receipts and hold the cash. This will ensure that different individuals are responsible for any related activity and that the responsibility for record keeping for the cash is separate from the physical custody of the cash.