Acc 220 Week 9 Internal Control Research Paper

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Internal Cash Control University of Phoenix ACC 220 Internal Control Implementing a strong financial policy for your business is important in today’s turbulent economic world. Accounting internal controls assure that all transactions are authorized, all transactions are recorded, access to assets is allowed only for authorized purposes and accounting records describe only real assets. Internal control reviews can further help your company achieve its performance and profitability targets, prevent loss of resources, and promote more reliable financial reporting. With the passage of the Sarbanes-Oxley Act and related regulatory actions, companies are placing renewed emphasis on their internal audit functions. Reported incidents of fraud and abuse within companies are at an all-time high. We all hope our…show more content…
Guard Dog has implemented all principles of internal control. Establishment of Responsibility is in that; only Tom Kimball is responsible for signing checks. Guard Dog shows efficient proof of segregation of duties by assigning different tasks to separate individuals. Jane Bell (purchasing) approves an invoice after receiving appropriate or authorization from Dennis Kurt (receiving). The checks are issued by Tom Kimball, the treasurer or his assistant, and then marked paid. Lastly, the bank statements and books are reconciled by accounting. Guard Dog requires that all checks require proper invoice documentation in which the prenumbered checks numbers are recorded on the invoice. Physical, Mechanical and Electronic controls are met by having all access to check in a secured location in a safe and by using a check writer all check are prenumbered to enhance accuracy and reliability of accounting records. Independent Internal verification is performed by having each individuals verified by the next department within the

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