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gsnoopy520
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oes this affect want to find out buy

Post by gsnoopy520 » Mon Jan 20, 2020 3:05 am

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Internal Control: A Preventive Maintenance Program


By John Day

You read about this in every newspaper in every town in the entire country: Some bookkeeper, trusted by the owner of a small business, embezzles thousands of dollars. If the theft doesn't put owner out of business, it certainly causes a major headache.

The reason we hear of these cases so often is that J.J. Redick College Jersey , in a small business, there may only be the owner and a bookkeeper. The owner doesn't like doing the books, doesn't understand them, and relies on this one person to take care of things. The bookkeeper, who is usually having personal financial difficulties Quinn Cook College Jersey , takes a small amount of money intending to pay it back. No one seems to notice, so more is taken. Over a period of time, it starts to mount up to a lot of money.

This is where the concept of "internal control" comes in. Essentially, every business should have, at some level Christian Laettner College Jersey , an internal control system in place to protect against losses, both intentional and unintentional. This is because "internal control" systems will: 1) protect cash and other assets; 2) promote efficiency in processing transactions; and, 3) ensure reliability of financial records. An internal control system consists primarily of policies and procedures designed to provide reasonable assurance that these three objectives will be achieved. The size and complexity of the business will determine the extent of the internal control system.

Regardless of size, one of the most important aspects of an internal control system is the concept of separation of duties. Separating duties makes it more difficult for theft and errors to go undetected. It is highly unusual for two employees to "collude" in an effort to steal from the company.

I worked as an internal auditor for a newspaper chain for three years. My job was to walk in to the newspaper offices unannounced and go directly to the cash boxes, count them Justise Winslow College Jersey , and verify receipts. One of my most important audit steps was to make sure the internal control procedures were in place and working properly. Here are a few suggestions for internal control procedures regarding handling of cash:

- Allow only specific designated individuals to handle cash.

- Give responsibility for bookkeeping to an individual who does not handle cash.

- Use numbered receipts to document all payments.

- Make all bank deposits promptly.

- The person who prepares the bank reconciliation should be different than the one handling cash.

- If possible, the person who makes the bank deposit s. Wholesale Jerseys Wholesale Hats Wholesale Jerseys China Free Shipping Wholesale NBA T-Shirts Wholesale Hats Wholesale NHL Hats Wholesale Nike NFL Hats Wholesale MLB T-Shirts Cheap Nike NBA T-Shirts Wholesale NHL Hoodies

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