ACC 290 Week 5 DQ2
ACC 290 Week 5 DQ2
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This 0 page Study Guide was uploaded by kimwood Notetaker on Friday November 13, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 13 views.
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Date Created: 11/13/15
Week 5 DQZ How would you describe the key internal controls that should be in place to protect cash in a cash rich environment such as a merchandiser The controls that should be in place to protect a merchandiser in a cash rich environment are Establishment of responsibility Segregation of duties Documentation procedures Physical controls Independent internal verification Human resource controls The establishment of responsibility authorizes who handles the registers The segregation of duties means that each independent duty associated with the process is separated therefore the same person does not complete to related tasks in a row One person runs the register another processes the deposit another person verifies the deposit and another reconciles the amounts by comparing receipts with deposits Documentation procedures include mail receipts deposit receipts and cash register tapes and these items are used to document or backup the information that is presented Physical controls include physically placing cash or deposits in a safe and limiting who has access to certain procedures Independent internal verification controls are used as another step to verify that the sales that were made were actual counts through the inventory manager providing physical counts the deposit clerk providing deposit receipts and another person comparing the two for accuracy Human resource controls would include a required time for employees to take vacations a rotational shift for employees in duties and a background check to check for fraudulent past activities References Kimmel P D Weygandt J J amp Kieso D E 2011 Financial accounting Tools for business decision making 6th ed Hoboken NJ John Wiley amp Sons
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