Natalie is struggling to keep up with the recording of her accounting transactions. She is spending a lot of time marketing and selling mixers and giving her cookie classes. Her friend John is an accounting student who runs his own accounting service. He has asked Natalie if she would like to have him do her accounting.
John and Natalie meet and discuss her business. John suggest that he do the task listed below for Natalie.
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Write My Essay For Me1 Hold cash until there is enough to be deposited. ( he would keep the cash locked up in his vehicle). He would also take all of the deposits to the bank at least twice a month.
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2 Write and sign all of the checks.
3 Record all of the deposits in the accounting records.
4 Record all of the checks in the accounting records.
5 Prepare the monthly bank reconciliation.
6 transfer all of Natalie’s manual accounting records to his computer accounting program. ( John would maintain all of the accounting information that he keeps for his clients on his laptop computer).
7 prepare monthly financial statements for Natalie to review.
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8 write himself a check every month for the work he has done for Natalie.
Identify the weaknesses in internal Control that you see in the system that John is recommending. Can you suggest any improvements if Natalie hires John to do the accounting?
SAMPLE SOLUTION
Internal controls refer to policies/ procedures that help ensure the continued reliability of any accounting system. In any accounting world, accuracy and reliability are paramount as they help business operators make more informed financial decisions by containing any emerging errors. Additionally, the different internal control procedures help prevent fraud by identifying possible errors before they escalate to bigger| GET AN EXPERT FOR YOUR ASSIGNMENT | weaknesses in the internal control in the system being recommended by John. Firstly, there is no separation of duties, as recommended in the principles of internal control. It is expected that the responsibilities of bookkeeping, deposits, and reporting and auditing are separated to help reduce the chances of transaction errors (Ingram, 2018). In the suggestion by John, he is doing all the functions with minimal monitoring. He suggests to hold cash, write and sign checks, do the bookkeeping…
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