Accounting Student

Instructions: Write a letter to Jerry Mays, owner of the Manhattan gild, explaining the weaknesses in internal control and your recommendations for amend the system. Students should write a one-page letter explaining the weaknesses and presenting recommendations. August 6, 2012. Mr. Jerry Mays Owner Manhattan companion 25 W 39th Street New York, NY 10018 concern: Having completed an audit of Manhattan associations financial disgraces to let in a comprehensive followup of the internal controls existing in your company, a number of findings indicating aras of weaknesses on the handling of cash recognise in this company progress to been put to hold upher for your wariness 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 trinity areas of weakness and recommendations mentioned below. First Weakness value income in the trip out are deposited weekly by the Company: To reduce fraud and misdirect to the barest minimum, deposits should be made on daily basis. Checks get at the beginning of the week should non be left sitting rough until they are deposited.

This has several(prenominal) risks including theft and misappropriation of funds. Once a day, the mail avail should be deposited in the bank. Second Weakness amount of checks acknowledge is not made: This is a visible lapse in the record keeping of the company. each(prenominal) mails containing checks should be taken to an employee who is prudent for transcription the amounts received. This will batten that the checks are recorded justly once they are received by the individual who manages the inbound mail. List of check gross should also be made forward handing over checks to the rive for deposit. Third Weakness Mail is briefly existence handled by 2 employees: This does not assign responsibility,...If you pauperism to get a unspoiled essay, order it on our website: Orderessay

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