Essay Available:
Pages:
1 pages/≈275 words
Sources:
2
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.68
Topic:
AF-U5D
Essay Instructions:
As a new auditor for the CPA firm of Black and Whyte, you have been assigned to review the internal controls over mail cash receipts of Simone Company. Your review reveals that checks are promptly endorsed “For Deposit Only” but no list of the checks is prepared by the person opening the mail. The mail is opened either by the cashier or by the employee who maintains the accounts receivable records. Mail receipts are deposited in the bank weekly by the cashier.
Explain the weaknesses in the internal control and give a suggestion for improving the system.
Essay Sample Content Preview:
Internal Control Review
Student’s Name
Institutional Affiliation
Course Name and Number
Instructor’s Name
Date
Internal Control Review
For an organization to thrive, it is essential to review the internal controls to identify weaknesses and offer viable solutions. Simone Company has weaknesses in its internal control that require immediate attention to increase efficiency. Firstly, there is inadequate segregation of roles in the internal control. From the review, it is evident that either the cashier or another employee can open the mail. Having multiple employees open the mail can cause inappropriate actions or fraud. Additionally, this can also lead to the occurrence of errors, which can jeopardize the quality of work presented. In this context, having multiple employees accessing sensitive data can lead to a breach in system security.
The internal control does not have a check listing process to record the list...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now: