Andre Young ACCT 504 Case Study 2 Essay

1. Constitution of duties. Merely one individual handles all the fundss and the junior-grade hard currency is unfastened for merely about any one to pull off and manage hard currency.

Necessitate to be retuned to no 1 can manage junior-grade hard currency but a public comptroller.2. Segregation of responsibilities. Their has to be some one overseeing every one in the company.

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Their has to be some one over seeing the comptrollers. the cheques being written and some one commanding the junior-grade hard currency. Peoples are normally non honorable and faithful about what money is being taken out.3. Document processs. Every thing has to be documented. Checks has to be written by ink able pressman that issues serialized cheques from the company. These cheques can be traced and hard currency and disbursals can be tracked.

Some one has to be responsible for the junior-grade hard currency. it can be easy to steal from the company.4. Physical Control. The company uses a safe to safe guard cheques held over the weekend that is over seen by the comptroller. I think that this is non suited plenty. Some one otherwise needs to over see this process.

5. Independent internal confirmation. Every thing that is fiscal related is handled by one individual. Some one else needs to be at that place to over see other fundss to do certain that no 1 is taking anything from the company.

2. What the company is making is get downing to stream line the operations and figure bills. That is a good start but because one individual handles most of the company finances it would be knowledge to hold a machine that makes pre serialized cheques. These cheques would be really helpful for the company in footings of gross and disbursals.

The company can follow where all the money is coming in and traveling out and who wrote the cheques. The best thing that can be done is to buy a machine because the company needs to do certain that it is on point for all its fundss. in the 2nd paragraph it clearly stated that merely one individual is supervising all the fiscal applications. It would be really easy for that one individual to do a important sum of net income by stealing what would be untraceable.3. What the company has done incorrect is non holding answerability for anything.

The first thing that should be handled is halting every one from traveling into the junior-grade hard currency and taking what of all time they want. In the 2nd paragraph it said that no 1 was over seeing these financess. What this means is that any one can take anything. Even though it is junior-grade hard currency it still has to be accounted for. What I would urge is that some one being hired from the out side to over see the junior-grade hard currency.

I would besides wish to see some one else over see the cheques that are being held on the weekends. The most of import recommendation I would state is holding some one else over see the financial officer and the accountant who carries out the same map. Hiring some one else to take one map from that individual and so engaging a director to over see all the minutess.

This manner they can non join forces to seek and rip off the company out their net incomes.


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