ACC 220 internal_cash_control

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Internal Cash Control 1

Running head: INTERNAL CASH CONTROL

Internal Cash Control

Student Name

College Name

Internal Cash Control

The Idaho Company seems to be a company that has the utmost trust in its employees and

their ability to make the correct decisions. By using checks that are not pre-numbered for

payments of bills and services the company is showing this trust. Another part where the

company shows its trust is by allowing the employees to keep blank checks in an unlocked file

cabinet. Even if the purchasing agent and the treasurer are as honest as can be the checks are still

in danger of being stolen by others. The Idaho Company seems to be in need of a better system

to help maintain and help control the use of their funds, without a better system of control this

company will soon know the error of their ways.

With the internal controls of accounting being ignored in this company the treasurer or

even the purchasing agent could find themselves with easy access to free money. One thing that

all companies should know is that after people work together for long periods of time a certain

relationship builds. By allowing these two employees full control over the company’s finances

the chance of them working together to line their pockets grows with every passing day. To keep

the owners off their trail it only takes an adjustment in their books, false purchases and even

checks for services not rendered could give the two employees money for themselves. The

treasurer having full control over the company’s checking account is just one more error and one

more avenue for the employees to take money. This job should be done by an individual who has

little to no contact with the other two employees. The following would be a memo to the owner

on how I would change the internal control of the company’s finances.

To whom it may concern,

After evaluating your company’s accounting department and watching how your internal

control work to insure the reduction of fraud, money laundering and theft I must warn you that

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Running head: INTERNAL CASH CONTROL Internal Cash Control Student Name College Name Internal Cash Control The Idaho Company seems to be a company that has the utmost trust in its employees and their ability to make the correct decisions. By using checks that are not pre-numbered for payments of bills and services the company is showing this trust. Another part where the company shows its trust is by allowing the employees to keep blank checks in an unlocked file cabinet. Even if the purchasing agent and the treasurer are as honest as can be the checks are still in danger of being stolen by others. The Idaho Company seems to be in need of a better system to help maintain and help control the use of their funds, without a better system of control this company will soon know the error of their ways. With the internal controls of accounting being ignored in this company the treasurer or even the purchasing agent could find themselves with easy access to free money. One thing that all companies should know is that after people work together for long periods of time a certain relationship builds. By allowing these two employees full control over the company's finances the chance of them working together to line their pockets grows with every passing day. To keep the owners off their trail it only takes an adjustment in their books, false purchases and even checks for services not rendered could give the two employees money for themselves. The treasurer having full con ...
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