Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Fetter Company by the bank on October 25. This memorandum has not been recorded by Fetter. The company’s ledger showed one Cash account with a balance of $21,877.72. The balance included undeposited cash on hand. Because of the lack of internal controls, Allan took for personal use all of the undeposited receipts in excess of $3,795.51.
12.6. Create a questionnaire checklist that can be used to evaluate controls for each of the four basic activities in the revenue cycle (sales order entry, shipping, billing, and cash collections). A.) For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. For example, one question might be, “Are customer credit limits set and modified by a credit manager with no sales responsibility?” B.)
The foreman then forged the worker’s signature on time cards and work tickets and, when giving out the checks, diverted the payroll checks drawn from the discharged worker to his own use. The most effective procedure for preventing this activity is to * (1) require written authorization for all employees added to or removed from the payroll. * (2) have a paymaster who has no other payroll responsibility distribute the payroll checks. * (3) have someone other than persons who prepare or distribute the payroll obtain custody of unclaimed payroll checks. * (4) from time to time, rotate persons distributing the payroll.
2 Keep all receipts that you use petty cash for; it is vital that you have a record for auditing purposes. Because petty cash is to be used for business, it will have to be accounted for during tax time. 3. 3 Write the new balance on the front of the envelope each time you use petty cash, and place receipts in the same envelope as the cash. 4.
Pro forma Cash Receipt You are to prepare pro forma cash receipt for use in the company’s shops. Pick a sample transaction and show the VAT element separately. Placebo LtdFountain HouseLondonN1 | Cash Receipt #: 123456790 | Date: / / . | Cash received from ______________________________________________________Of £ ______________________________________________________________________For _______________________________________________________________________ | Payment Received in: Cash | | Cheque | | Other | | | | Net | VAT | Total | Amount Due | ........ | | | Amount Received | | | | Balance Paid | | | | _______________________Signed By | Image Source: (Free Receipt Template , 2013) What is a Cash Receipt? A pro forma cash receipt is a document narrating incoming payments from debtors or receivables and is issued by the business or creditor (Cash Receipts Function, 2011).
One similarity between an email and meeting minutes are sent electronically by a team manager. Minutes are important to have, otherwise staff members cannot remember what kind of jobs they were said to do. All members of staff receive their minutes. One difference between an email and meeting minutes. Meeting minutes are formal paper, which can be viewed only by the certain members of staff.
3. Are the main vendors' account balances verified against the vendors' balances from their own records, at least once per year? Payroll: 1. Are employee addresses and bank account numbers (for direct deposit) checked through accounting software at periodic intervals, to determine that there are no two employees with the same bank account number (which would indicate a fake employee, also called a ghost employee)? 2.
• Custody – handling cash, tools, inventory or fixed assets; receiving customer checks and writing checks on the organization’s bank. Due to the lack of segregation of duties, James Guisti, who was a trusted 14-year employee was caught embezzling $1.83 million from the bank. Guisti had the authority to approve loans up to $25k and processed 67 loans that were bogus. Lucy Fraioli who was Guisti’s employee and cosigned the checks as she thought there was nothing wrong with them. The checks were cashed by Marcia Perfetto, the head teller at the branch.
B) Security of warehouse – Woody had unrestricted access to the warehouse, which was only protected by a simple padlock. C) Inventory taken once a year – Inventory was not accounted for on a regular basis which made stealing much easier to do since no one within the company would realize the missing tires until inventory had been taken. D) Sales Documents not used – Sales representatives often wrote down transactions on “scrap paper” instead of filling out the proper source documents such as purchase orders, sales orders, and credit memos. These pre-numbered documents are KEY in providing a secure internal controls. 3.
After I unpacked the boxes at our delivery counter making sure the area is clean, clear before I started. Then I checked that each item delivered correctly matches what we have been ordered for with regard to quantity, product, strength, form, pack size etc. I found that one item is missing, we received three items instead of four, and I put note on document and notified the pharmacist. I rang wholesaler by phone and let them know about the error. They told me, that this item will added in next delivery.