Write a 700 to 1050 report addressing the sociocultural differences between the US and South Korea?

Answer 1

Internal Cash Control ACC 220 Survey of Accounting: The Maze of Numbers Ryan R. George After evaluating the Idaho Company scenario (E4-5) on p. 194 of the text, I found several weaknesses in internal cash control. The first weakness that I noted was the fact that checks are not pre-numbered and that both the purchasing agent and the treasurer are authorized to issue checks, which therefore gives access to the un-numbered, un-issued checks to two employees. The next weakness that I was able to identify is only the purchasing agent is verifying the accuracy of the invoices and the sole checking account is only reconciled by one person. I recommend to the Idaho Company to immediately order pre-numbered checks. I also advise, whenever possible, documents should be pre-numbered, and all documents should be accounted for. If this does not happen, checks can be taken and not accounted for because there is no numbering sequence. I also recommend that one person should be entrusted with the key to the file cabinet in which the checks that are not pre-numbered are stored. Also effective immediately, each and every check will require two signatures. Both the purchasing agent and the treasurer will verify the accuracy of vendor bills prior to payment. The accuracy of the vendor bills will again be verified by a third employee. If these steps are taken the companies overall ability to manage cash will drastically increase After evaluating the Guard Dog Company, I was impressed to find that all of the five basic principals of cash management were being used. Segregation of duties is exercised because the two people who approve the invoices are different from the persons who sign the checks. Independent internal verification is used when multiple people verify the accuracy of invoices. Documentation of procedures is used when additional information is written on the check after it is stamped PAID. And least but not least by requiring all checks to be pre-numbered and written using the company's newly purchased check writer, the Guard Dog company is using physical, mechanical, and electronic controls. After serving on a three person audit team for the trustees of a church, we found that there is no audit procedure and the board of trustees is not at all involved in the collections and recordkeeping procedures. The financial secretary has been in place for an excessive period of time. Since there has been no audit, there is no way to tell if the financial secretary is as trustworthy as the church feels he/she is. The next thing we found is the head usher counts the cash received from the weekly collection services and that no one is verifying his count. There should be a detailed note with the date, the amount of the count, and the usher's signature. Below that should be a count by a second person along with the date and their signature. Another practice that is alarming is that church members are being instructed to write out checks payable to cash, which means these checks can cashed by anyone and the average church member does not receive their cancelled checks to see who has signed the back. The church should make it mandatory that all checks be made out payable to the church only. After evaluating the churches cash flow management and pinpointing their mistakes I have devised a plan of action to correct their mistakes and increase the churches cash flow efficiency. First, the ushers should remain with the head usher while he counts the collection. After the head usher gets the total, this should be verified by two more individuals. The head usher should sign the notation with the amount counted and get another usher to sign, verifying that the amount is correct. The finance committee should approve all cash expenditures and view the signatures and the amounts of each collection. The finance committee should view the bank statements and the reconciliation. The finance committee should also appoint someone else to verify the reconciliation. Independent internal verification should be used in all cash matters. Segregation of duties should be put into place and someone besides the financial secretary should make the deposit. I am certain that if the following changes are implemented immediately, the Board of Trustees will have peace of mind without relying on trust alone and the churches cash flow efficiency will drastically increase. The five basic principals of cash management are vital in any business as well have a direct result of the survivability of the business, no matter the size. These principals help to keep employees honest, assist should an audit by an outside agency arise, and increase accuracy of finances and financial records.