Accounting - Internal Cash Control Essay Example | Topics and Well Written Essays - 1000 words

bill - Internal Cash Control - Essay ExampleThis allow for benefactor the company to shift from manual(a) processes to automated processing. Lastly, a safe should be provided where all blank checks are stored and access should only be provided to the treasurer or whoever, is entitled to sign checks. view as suction stop Company has brought stringent changes to their system which will help them use their cash well and avoid any mistakes in cash disbursements. Guard Dog has applied the following precepts in their attempt to strengthen their internal cash control for cash disbursements.Firstly, Guard Dogs approach to eradicate manually preparation of checks has been in pursuance of a tenet known as Documentation procedure. All checks are to be numbered and written after receiving authorize invoices. Multiple payments can be avoided through this process.Secondly, another principle that the company has applied is establishment of duty. The principle requires designation of personne l, preferably treasurer, to write any disbursement check. The company has assigned Tom Kimball, the treasurer, or Karen Thews, the assistant treasurer, to make all check disbursements.Fourthly, the company has applied segregation of duties principle as well. fit in to this principle, different individuals approve and make payments. In this case, the invoice should be approved by Jane Bell, the purchasing agent, and Dennis Kurt, the receiving part supervisor. After the approval is given, the checks would be written by either the treasurer or his assistant. This will help them minimize the potential for theft.Fifthly, a principle that is essential to strengthen cash control is the application of Physical, mechanised and Electronic Controls. This principle requires the company to store blank checks in safes with limited access (Harrison, 2008). The company has obeyed to this principle by storing all blank checks in a safe in the treasurers