Fi 504 Case Study 2 Essay

F. Controls over cash and credit: a. Individual accountability for cash stocks. This meant that most personnel who dealt directly with cash were held individually accountable for a specific sum of money that was charged out to them. This control was designed to address the problem that these personnel will make mistakes to create any large shortages or persistent patterns of shortages.

First, there are many positive impacts that it has. An example of this is how it prevents employees from pilfering money from the manager. There is also some people that despise the cash register, and those people are the employees that were taking the money before. Finally, the evolvement of the cash register from Ritty’s model to the electronic model, was very important to each society that it evolved through. All in all, without the cash register, small businesses will crumble from loss of profit, and the economy would go into a downfall without the invention of the cash

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.

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.

The company could spot the employees check during reconciliation and catch on to what they are doing even though they are replacing the money it is steal larceny at the time they take the money.

You should put a policy in place as to what the petty cash fund can be used for, who is allowed to disburse the funds. The fund should be kept in a locked box or a locked drawer for safekeeping. No one should have access except the person in charge of disbursing the funds. Anyone receiving the funds should give a receipt for proof of purchase and amount of the purchase. If the amount disbursed is a larger amount than the purchase then the change should be returned with the receipt and both should add up to the amount that was disbursed for that specific purchase.

Each Friday, the cash clerk records the amount of cash receive and deposit the money in the bank account. Each quarter, the controller requests information from the bank necessary to prepare bank reconciliation.

Know who is responsible when cash is drawn out of the register at the end of shifts or at the end of the day.

CASH - When payment is made by cash, the driver much check each note with a counterfeit detection pen, prior to leaving the client premises, to ensure no fake banknotes are passed. The driver should alert the office immediately any suspicious notes are received.

On Saturday 9/16/2017 @ approximately 15:15 p.m. inside of Cage 5, Alishia Smith serviced a customer who asked for chips to play Poker. The customer presented her with $2500 in twenty dollar bills. She ran the money on the currency counter and paid the guest out $4500 ($4000 in $100 black chips and $500 in $5 red chips). This transaction caused Renelle to be $1000 short at the end of her shift. Alishia failed to count the money out on camera, so we couldn’t verify exactly how much the guest gave her. Throughout the shift Yvette was observed working out of Renelle’s cashier till which is a violation of Cashiering policy. She took $2500 in 20’s without prior authorization. Guest was contacted but has not returned the money as of 6/14/2017.

Getting a check was easy because I logged on as CW or SUB and requested a check and then I approved the check. The checks were printed overnight, and it was SUB’s job to collect the physical checks every day from the company building next door. I had to make sure that SUB had the day off the next day because, when SUB was away, I was the person who collected the checks. At my desk I would remove the Ace check from the batch, and all the other checks were mailed off to where they were supposed to go. Normally, I would just wait for SUB to take the day off, and I’d request an Ace check the day before. If I needed money urgently, I’d give SUB the day off so that I could collect the checks.

Accordingly, numerous private ventures have discovered a specialty offering cash checking machines to those urgent to monitor their mounting heaps of bills. The request has become so high that the machines have supplanted iPads and cell phones on the racks of numerous hardware stores.

Lord & Benoit Report (2006): Do the Benefits of 404 Exceed the Cost? A study of a population of nearly 2,500 companies indicated that those with no material weaknesses in their internal controls, or companies that corrected them in a timely manner, experienced much greater increases in share prices than companies that did not.[23] [24] the report indicated that the benefits to a compliant company in share price (10% above Russell 3000 index) were greater than their SOX Section 404 costs.

thus minimizing the amount of currency that the Company has on hand at any point in time during the week. Additionally, the use of the bank on the daily basis facilitates the control of cash because it creates a double record of all bank transactions - one by the Company and one by the bank. Also we recommend that all receipts be deposited in the

The Sarbanes-Oxley Act of 2002 (SOX) was enacted into law in 2002 in the wake of corporation financial reporting scandals involving large publicly held companies. SOX instituted new strict financial regulations with the intent of improving accounting practices and protecting investors from corporate misconduct. SOX requires corporate executives to vouch for the accuracy of financial statements, and to institute and monitor effective internal controls over financial reporting. The cost of implementing an effective internal control structure are onerous, and SOX inflicts opportunity costs upon an enterprise as executives have