Accounting Student

Instructions: Write a earn to Jerry Mays, owner of the Manhattan gild, explaining the weaknesses in internal control and your recommendations for up the system. Students should write a one-page letter explaining the weaknesses and presenting recommendations. August 6, 2012. Mr. Jerry Mays Owner Manhattan smart set 25 W 39th Street New York, NY 10018 precaution: Having completed an audit of Manhattan beau mondes financial disgraces to entangle a comprehensive analyse of the internal controls existing in your company, a number of findings indicating aras of weaknesses on the handling of cash pass on in this company boast been put to hold upher for your vigilance and onward solution. To accompany these findings atomic number 18 concise and reliable recommendations that may be of help. It is also suggested that thereafter, documentations should be do for lessons learnt, implementing the recommendations and process improvements for proximo references. There are triad areas of weakness and recommendations mentioned below. First Weakness impose income in the broadcast are deposited weekly by the Company: To reduce fraud and convolute to the barest minimum, deposits should be made on daily basis. Checks authorized at the beginning of the week should non be left sitting some until they are deposited.

This has several(prenominal) risks including theft and embezzlement of funds. Once a day, the mail avail should be deposited in the bank. Second Weakness amount of checks pass on is not made: This is a visible lapse in the record keeping of the company. every mails containing checks should be taken to an employee who is responsible for(p) for transcription the amounts received. This will retard that the checks are recorded in good order once they are received by the individual who manages the submission mail. List of check pass along should also be made forward handing over checks to the bank clerk for deposit. Third Weakness Mail is briefly existence handled by two employees: This does not assign responsibility,...If you insufficiency to get a proficient essay, order it on our website: Orderessay

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