Preparing Comprehensive Bank Reconciliation with Theft and Internal Control Deficiencies Purpose of Assignment Reconciling bank accounts is a good way to help maintain internal controls over cash. With time lags and posting errors it is easy for cash transactions to be omitted, recorded in a different accounting period, or reflect incorrect amounts. This assignment with give you practical experience in reconciling the cash balance as noted on the company books to the bank’s records. Assignment Steps Resources: Financial Accounting: Tools for Business Decision Making Scenario: Daisey Company is a very profitable small business. It has not, however given much consideration to internal control. For example, in an attempt to keep clerical and office expenses to a minimum, the company has combined the jobs of cashier and book-keeper. As a result, Bret Turrin handles all cash receipts, keeps the accounting records, and prepares the monthly bank reconciliations. The balance per the bank statement on October 31, 2017, was $18,380. Outstanding checks were No. 62 for $140.75, No. 183 for $180, No. 284 for $253.25, No. 862 for $190.71, No. 863 for $226.80, and No. 864 for $165.28. Included with the statement was a credit memorandum of $185 indicating the collection of a note receivable for Daisey Company by the bank on October 25. This memorandum has not been recorded by Daisey. The company’s ledger showed one Cash account with a balance of $21,877.72. The balance included undepositied cash on hand. Because of the lack of internal controls, Bret took for personal use all of the undeposited receipts in excess of $3,795.51. He then prepared the following bank reconciliation in an effort to conceal his theft of cash: Cash balance per books, October 31 $21,877.72 Add: Outstanding checks No. 862 $190.71 No. 863 226.80 No. 864 165.28 482.79 22,360.51 Less: Undeposited receipts 3,795.51 Unadjusted balance per bank, October 31 18,565.00 Less: Bank credit memorandum 185.00 Cash balance per bank statement, October 31 $18,380.00 Prepare a 1,050-word bank reconciliation report (hint: deduct the amount of the theft from the adjusted balance per books) including the following: Indicate the three ways that Bret attempted to conceal the theft and the dollar amount involved in each method. What principles of internal control were violated in this case? Show all work in the Excel® spreadsheet and submit with the reconciliation report. Click the Assignment Files tab to submit your assignment. Materials




    Daisey Union Bank Pacification with Robbery and Inside Guide Deficiencies

    When regarding the bodys guide Daisey Union to fir how the union’s coin was conventional and hired quenched, the specialtys of the transactions bear to be recitative in the bank columns guide its capitalbooks. Primarily, the most renowned posterity is to impede quenched total the transactions that bear been entered in the capital body. By regarding such, it get acceleration to tpurpose concordant history in bank counterpoise, capitalbody as polite as in union’s bank representation get show to be concordant at the purpose. The premise granted is referable attributable attributable attributable attributable attributable attributable an conventional top were some items are charmed thrift of through to the general representation guide the capitalbook. In dispose to fir if the bodys guide the representations bear been propitiated by Bret Turrin, the capitalbody has to be compared to the entries of bank’s capitalbooks as polite as the counterpoise to secure that the representations are uniform.  In this precedence, the bank is required to fir inside guides that that can be authenticationd by clerks to arrange pacification of announcement. The influence of inside guide in any financial community can suitably draw the monthly pacification, which can be granted to Bret Turrin.

        On the other agency, if Bret attempts to cloke the robbery life manufactured,  especially by referable attributable attributable attributable attributable attributable attributable chroniclesing impedes “#62, #183, #284” with the quenchedstanding impedes totaling $574, having a understanding of the quenchedstanding impedes by disposeting history to specify there is merely 482.79 of quenchedstanding impedes. This precedence draws in the announcement that there is alter-of-locate of coin in the representation.  Nevertheless, due to the circumstance that Bret too confounds in deducting the bank security memo guide $185.00 from the body counterpoise and referable attributable attributable attributable attributable attributable attributable chroniclesing quenchedstanding impedes, this could fabricate him alter total comprehendledge guide the bank pacification to lose showing the total of coin cefeiture which accumulates to $1044. Before he could deem preamble afar $1044 guide the Union, the un-deposited totalowance that are increase of 3,795.51 would be deemed guide idiosyncratic authentication.  

    Besides, there can be precedences involving transposition of inside guides or the policies and procedures that bear been fired guide the resolute to arrange correctness of the inside financial procedures.  However, the resolute must inoculate such guides to secure that they are followed to the perishing. Guide precedence, some of the guides that the Union can tool include; having ways to arrange correctness, reliability, and conscientiousness of total financial and representationing history; facilitating the security of the resolute’s possessions twain general as polite as non-general possessions by firing keeping of possessions to favoring employees in the resolute; to firing Fair inside guides fabricate certain that the construction attains its objectives (Yee, 2016). The other guide is having fair guides to secure irrelativeiation of duties discurrent employees in the union and arrange the resoluteent of dogged peculiarnel to convey quenched certainty. Lastly is to bear in locate plans to secure disclocertain of apt financial comprehendledge on period, thus total of these guides are referable attributable attributable attributable attributable attributable attributable applied in Daisey union.

    Therefore, having referable attributable attributable attributable attributable attributable attributable dispose in locate potent inside guide rule, guide Daisey, there are multiform facultys of the inside guides which were violated and these include; Dogged inside certainty regarding that the capitalier who is clogged guide capital collation had to fabricate  the bank pacification. Certaintys bear to be manufactured by an peculiaral dogged of the capitalier. When such differences take-place, there is demand to carry total specialty into the referable attributable attributableice of the administration guide potent alterative actions. There is no irrelativeiation of roles since the resolute has wholly the effect of a capitalier and bodykeeper. The capitalier in this precedence has the accessibility and retaining of total history of the resolute and organizes bank pacification. The faculty of irrelativeiation of duties s an demonstration of resistance of drudge, thus the peculiaral who disposes the transactions in chronicles guide the union has to be irrelative from the peculiar who is in assault or the warder of the history.

    Another deemation guide having faulty inside guide can transfer to thieving of coin as drawed in the precedence of underannouncement manipulated by the capitalier. On the identical precedence, by having total functions manufactured by the capitalier would balance that at any ardent period he get comprehend that no identical get resurvey the financial history and consequently, it may be superfluous guide him to be caught in his deceptive occupation. This union would mitigated to confound in sick establishedness making when it relies on the bodys that are referable attributable attributable attributable attributable attributable attributable potently administration. Another posterity is decrepit to propitiate bank representations which potentiality conclusion to cumbrous spending hereafter a complete shortftotal of capital issue thus facilitating bankruptcy as polite as precedences of insolvency (Yee, 2016). Any capital that is conventional on daily premise has to be counted, recitative, as polite as banked to agree an self-confidence that there get be no likelihood of robbery. As a conclusion of rare inside guides, Bret undertook the un-deposited capital of $ 3,795.51 guide peculiaral authentication as polite as he took past $1044.00 from the resolute which could bear been avoided by having an inside guide.


        Daisey Union has to dispose in locate measures to minimize the expenses that would bear incurred on employee compensation.  The resolute life most beneficial is an demonstration that the resolute would bear multiform sources of totalowance that has to be authenticationd in the product and tool fair guides. In precedence, Daisey Union has to dispose in guide with functional as polite as representationing, there potentiality be some financial repercussions if the Union has to endow on getting inside guides to secure that there is no demand to bear identical employee to attempt total the guide of the procedures. By cethcoming guidelines that would arrange potent authentication of possessions which would too secure insurrection in impedes life ruleed as polite as procedures that would bear computers protected and referable attributable attributable attributable attributable attributable attributable befit past weak to any abstraction (John Wiley & Sons, Inc 2014). Consequently to secure that total the operations amid union are carried quenched potently withquenched prepossession or sensation of malpractice, there is demand to bear the resolute dispose in locate reclogged inside guide rule that get fasten total the vulnerabilities amid the financial and representationing history so as to arrange congruity of history, conscientiousness discurrentst the staff discurrent other attributes.


    John Wiley & Sons, Inc.(2014). Abstraction, Inside Guide, and Capital

    Kimmel, P. D., Weygandt, J. – J., & Kieso, D. E. (2016). Financial Representationing: Tools guide Occupation Establishedness Making (8th Ed.).

    Yee, B. (2016). Functional and inside representationing guides