1- Dual-signature of the company checks: It will be required two authorized signatures on all the company checks. So, this will ensure that the two people agree with the payment and the merchandise or goods that are being exchanged for this amount of money. This will be determined by making copies of all the checks that the company does and the bank has to ensure that these two signatures are the ones that were authorized for the company in the first place.
2- Reconcile agency bank account each month: An independent person will prepare this reconciliation. This person has to examine all the canceled checks, bank statements, and more. This will prove that the expenditures are related to the company, that the checks are not issued out of sequence, etc. This reconciliation will be review it by a supervisor or manager to enforce this internal control. 3- Segregation of duties: Give each employee different responsibilities. …show more content…
Separate the operational functions from the administrative. For example, if one employee is in charge of recording transactions of the inventory and also has full access to this inventory this could create some problems. This employee could take advantage of this situation and steal some of the assets of the company. So, this internal control will prevent fake transactions and stealing. I will determinate this by making a monthly match up of the inventory against the transactions of the month.
4- Access Controls: This refers to control the access to the accounting system of the company via passwords and ID verification. So, this will keep unauthorized people out of the system. This internal control will be determined by changing the password each month and by having monthly reports of who tried to get inside of the system without the password or who tried to corrupt it.
5- Cash register and checks register: The owner of the company or a supervisor will review the checks, the check register, the cash register and the bank statements. This will prevent any fraud or error. The internal control will be determined by making a regular but not a predictable report of this control. 6- Purchase Authorization: A manager should sign all the purchase orders in order to authorize the purchase. This protects the assets of the company and it will prevent possible frauds and it will guarantee that the employees are not making some of these purchases for themselves. Making copies of all the purchase orders and sending this to the manager in charge will determine this internal control. 7- Assets of the company and official business: This internal control is to ensure that all the assets of the company, such as equipment, vehicles, and more and used only for business purposes. This will prevent that the employees use this assets in the wrong way that could affect the company. The internal control will be determined by making reports of the purpose of the trip, or the use of this equipment, the name of the person that will use it, times, mileage, dates and more. This report will be presented to the manager in charge. 8- Changes in the budget: This control will determine that any changes in the profit and loss statement or in the balance sheet are appropriate and reasonable for the time period. This will prevent any waste of money and the
2- Reconcile agency bank account each month: An independent person will prepare this reconciliation. This person has to examine all the canceled checks, bank statements, and more. This will prove that the expenditures are related to the company, that the checks are not issued out of sequence, etc. This reconciliation will be review it by a supervisor or manager to enforce this internal control. 3- Segregation of duties: Give each employee different responsibilities. …show more content…
Separate the operational functions from the administrative. For example, if one employee is in charge of recording transactions of the inventory and also has full access to this inventory this could create some problems. This employee could take advantage of this situation and steal some of the assets of the company. So, this internal control will prevent fake transactions and stealing. I will determinate this by making a monthly match up of the inventory against the transactions of the month.
4- Access Controls: This refers to control the access to the accounting system of the company via passwords and ID verification. So, this will keep unauthorized people out of the system. This internal control will be determined by changing the password each month and by having monthly reports of who tried to get inside of the system without the password or who tried to corrupt it.
5- Cash register and checks register: The owner of the company or a supervisor will review the checks, the check register, the cash register and the bank statements. This will prevent any fraud or error. The internal control will be determined by making a regular but not a predictable report of this control. 6- Purchase Authorization: A manager should sign all the purchase orders in order to authorize the purchase. This protects the assets of the company and it will prevent possible frauds and it will guarantee that the employees are not making some of these purchases for themselves. Making copies of all the purchase orders and sending this to the manager in charge will determine this internal control. 7- Assets of the company and official business: This internal control is to ensure that all the assets of the company, such as equipment, vehicles, and more and used only for business purposes. This will prevent that the employees use this assets in the wrong way that could affect the company. The internal control will be determined by making reports of the purpose of the trip, or the use of this equipment, the name of the person that will use it, times, mileage, dates and more. This report will be presented to the manager in charge. 8- Changes in the budget: This control will determine that any changes in the profit and loss statement or in the balance sheet are appropriate and reasonable for the time period. This will prevent any waste of money and the