Acc340 Week 3 Assignments from Readings

Week 3 Assignments from the readings

Durwin Bigalbal

University of Phoenix

ACC/340

June 24, 2013

Sherwin Cord

Week 3 Assignments from the readings

Chapter 8: Case Analyses 8–17 Fairfax Recreation Center

As auditor of Fairfax Recreation Center internal cash controls, there are six principals that to consider. These controls include:

1. Delegation of authority and separation of duties: Separation of duties reduces temptation and misuse of assets.

2. Reconciliation: Occurs by confirming that the cash written records match actual activity

3. Cash control: Appropriate procedures should be in place to eliminate the need for those who handle cash transactions to also maintain cash accounting records.

4. Physical control: Risk of loss or damage to assets must be controlled

5. Periodic Independent Verification: Monthly reconciliation of the accounting records with the bank receipts and actual funds in the bank account.

6. Sound Personnel Policies: Specific policies applied to each employee position

Weaknesses

1. An employee monitoring the turnstile could lead miscounting members entering the facility, or the accidental allowing of non-members to enter.

2. Member failing to check in after showing membership card. This could also lead to inaccurate data for the number of guests entering the facility

3. Nonmembers may access the facility using a member’s card as picture IDs and names are not being regularly checked.

4. Cash from nonmembers may not be turned in

5. The waiver form may not be completed because of the theft

6. The cash from the cash box may be miscounted either accidentally or intentionally, resulting in less money being documented than was collected.

7. The full amount of cash collected may not make it to the bank in each evening’s deposit.

Recommended Improvements

1. A turnstile with...