Communication Activity BYP8-5 Assignment Example | Topics and Well Written Essays - 250 words

Communication Activity BYP8-5 - Assignment Example gold is considered the most liquid current asset. Cash is needed to pay off the short term and long term obligations of a company. Upon review of your internal control system to handle hard cash our truehearted found several deficiencies. The person that deposits the checks has properly endorsed checks that are ready for the deposit, but the person does non know the accuracy of his check deposit because he does not have a list of the checks. Adding a list of checks would provide a way to verify if the checks that are supposed to be deposited are there. The person that is treatment this transaction is the wrong person. Currently your company is allowing the cashier and the account receivable clerk to handle this transaction. This is a risky move because since these employees are dealing with cash and receivable they could collude against the company and create a fraud scheme to steal money from the firm. Since they are handling all aspects of the cash dealing it would be easy for them to steal without anyone noticing. To fix the problem these employees should no longer handle the check deposits. The weekly deposit routine can be improved by switching to a daily deposit routine. Regards, John May, Auditor Tel. (856-932-1412)