Reyes Company: Weaknesses in Internal Control Over Cash Disbursements

720 Words3 Pages
Reyes Company Weaknesses in internal control over cash disbursements Cash disbursement refers to the way an organization like a business or government entity, governs its utilization of funds. Payments are made to distinctive areas of the business or diverse accounts set up for worker benefits and different employments. Organizations improve internal controls, or self-made guidelines and regulations for dispensing cash along these lines (Weygandt, 2009). Such internal controls are commonly needed in an organization, but they accompany innate weaknesses that the leaders must take into consideration. First, accountability eludes the security of the internal controls and their capability to withstand misuse and misconduct. Theft and other forms of robbery or cheating are conceivable outcomes when managing large financial disbursements are being made. Internal controls that have flawed tracking frameworks like lack of log-ins to the framework or other issues have poor accountability capacities. They make gaps that may make an organization lose cash through unscrupulous conduct (Kimmel, Weygandt & Kieso, 2011). Internal financial control is extremely essential to any business. Without viable techniques set up to guarantee that supports and assets are to be utilized within a moral and proficient way, an organization might lose cash or run into numerous financial issues. Through legitimate foundation like segregation of duties, enhanced security measures, document procedures,

More about Reyes Company: Weaknesses in Internal Control Over Cash Disbursements

Open Document