Internal Control in Accounting System

Currently there are over 700 employees all of which are paid by cheques printed on a bi-weekly basis. Manual cheque printing is neither cost nor time efficient. Payroll direct deposit can significantly reduce the production, administration and

This method of cash larceny is more dangerous because an employee would have to put in a personal check to cover the balance so the till would balance .

the holiday. If an employee is not at work on a pay day when paychecks are distributed, the employee should pick up his paycheck from the Firm Administrator on the next day the employee is at work.

was a watch on the account and he would be unable to cash the check. Jeremy then

Petty cash fund is not to be used for personal items, IOU’s, office party favors, lunches, taxi fare, or cashing checks etc.

This assignment reviews basic accounting entries for a series of transactions, emphasizes the integration of journals to the financial statements, and introduces students to these journal entries in SAP ERP

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.

S., & Hassan, M. K. (2012). The domination of financial accounting on managerial Commerce & Management, 22(4), 306-327. doi:10.1108/10569211211284502

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

What is in place: All employees have access to the petty cash drawer in a desk drawer and whenever they use any cash, they are only asked to leave a note.

Health care facilities will accept cash payments from patients. When the healthcare employee receives a cash payment from a patient they must in return give that patient a receipt. Cash management “Refers to the efficient management of cash in a business in order to put the cash to work more quickly and to keep the cash in applications that produce income, such as the use of lock boxes for payments.” (Cash management) The use of a lock box is essential to keep your cash safe. You want to make sure you store your lockbox under the counter or a locked cabinet. Money that is stolen from a facility results in a loss of income. At the end of the day this money will be taken to the bank and deposited into an account. This cash will be accounted for on a monthly basis. This amount will going to the annual budget for revenue and expenditures. Each month the facility will have either a good or low amount of cash

The following report relates to the internal controls of Woolworths, and will look to describe and analyse them with the use of flow charts. The report will then move onto give details of an audit program that has been designed to test the internal controls of Woolworth’s accounts payable. Moreover, possible ways of how controls could be overridden as well as how the overall system could be realistically improved will also be discussed within the report.

“Internal controls are policies and procedures put in place to ensure the continued reliability of accounting systems” (Ingram 2017). WorldCom’s attempts at maintaining internal controls are less than favorable. Segregation of duties enables the division responsibilities to ensure that no employee completes two similar tasks. The CEO’s monitoring of WorldCom’s financial processes shows that the company has a lax segregation of duties, which makes it easier to commit fraud. Access controls protect financial data from unauthorized access, however, WorldCom’s extent is password-protected computers. No access inventories are taken to monitor employee usage, so there is no trail of when employees are doing during work.

Finally, we also observed that the cashier deposits mail receipts in the bank weekly. The internal storage of cash on the premises of the Company is not advisable for obvious reasons- theft, robbery, and unauthorized access. Employees with other intentions can alert external cohorts to raid or rob the Company at night or at another time to gain access to the cash stored on the premises. Additionally, the storage of the cash on the premises presents a "working hazard" for the employees as outsiders wanting to gain access to the cash may subject them to unwanted raids. The use of a bank on a daily basis contributes significantly to good internal control over cash. The company can safeguard the cash on a daily basis by using a bank as a depository and

• Describe the meaning and marketing of cheques, crossing of cheques and cancellation of crossing of a cheque;