Principles to internal controls in the situation of a recordkeeper that wrote out checks to her fiance? - internal audit system
I need help with this kind, if anybody would. I have tried on your own and have a rough idea, I'm not sure what you created. I show entries or I can write in detail what I think the principles of internal controls.
Bemis Company is a rapidly growing startup companies. The record keeper, who was recruited a year ago
left the city after the businessman has discovered a large sum of money that disappeared in
the last six months. An audit found that the record keeper written and signed several checks
the name of her fiance and then moves through the control of expenditure such as salaries. The groom, who took
Has control, but it has never worked for the company, left the city with the record keeper. Accordingly, the Company has
suffered a loss of $ 84,000 uninsured. Assessment of internal control systems and Bemis
that the principles of internal control appear to have been ignored.
Sunday, January 3, 2010
Internal Audit System Principles To Internal Controls In The Situation Of A Recordkeeper That Wrote Out Checks To Her Fiance?
1 comment:
Since I'm not in that class, I can not work for you.
'm Not seeing any messages. Movement is looking for a plan in order to prevent this in future.
Being in the business, I know one thing very clear from the outset. The recorrdkeeper never should have been an authorized signatory on the account. The record keeper, who had never access to the checkbook. These two safeguards prevent the incident.
Well, the boss probably will not have them, personally write and sign every paycheck. Thus, a computer system that is required for the computer to a check, print social security number must be entered. There must be a different database, which should all social security numbers of employees and the record keeper has no access to this database. The HR Executive should be the only one who can enter the delete, or change the social security number.
Try a review 123-45-6789 cut is her boyfriend, and bam, the computer can notSSN t has not in the database of employees of the company.
Another backup is to enable the control, which is issued to an employee only once every week or every two weeks, or if the salary is. To record keeper could not pay someone two or three times a week.
Another approach is the treatment of prisoners by the resource management rights for all is important to have record keeper no social security number, and the test is given the agreed remuneration. In this way, you can not pay $ 50,000 JOE DO. per week.
The person responsible for printing the checks should not have used the power of access to information to create the checks or the payment amounts.
The more hands that participation was in the process, the less likely that someone to steal or divert because they have to other employees involved in the process and is taken very quickly in attack if they do.
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