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 COMPANY   

    Name

    University

    Daisey Audience Bank Pacification with Robbery and Inner Moderate Deficiencies

    When becaportraiture the sizes moderate Daisey Audience to settle how the audience’s coin was conventional and hired quenched, the elements of the transactions entertain to be recitative in the bank columns moderate its currencybooks. Primarily, the most glorious consequence is to impede quenched whole the transactions that entertain been entered in the currency size. By becaportraiture such, it conquer succor to frequent resembling history in bank redress, currencysize as courteous as in audience’s bank proposition conquer show to be resembling at the purpose. The postulates supposing is referable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable an conventional site were some items are enslaved ceesight of through to the exoteric proposition moderate the currencybook. In arrange to settle if the sizes moderate the propositions entertain been harmonized by Bret Turrin, the currencysize has to be compared to the entries of bank’s currencybooks as courteous as the redress to determine that the propositions are equable.  In this subject, the bank is required to settle inner moderates that that can be portraitured by clerks to fit pacification of proposition. The influence of inner moderate in any financial literature can suitably draw the monthly pacification, which can be supposing to Bret Turrin.

        On the other striveer, if Bret attempts to screen the robbery substance manufactured,  especially by referable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable archivesing impedes “#62, #183, #284” with the quenchedstanding impedes totaling $574, having a perception of the quenchedstanding impedes by entireayting history to set-forth there is barely 482.79 of quenchedstanding impedes. This subject draws in the proposition that there is motion of coin in the proposition.  Nevertheless, imputable to the certainty that Bret so complicates in deducting the bank honor memo moderate $185.00 from the size redress and referable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable archivesing quenchedstanding impedes, this could execute him fluctuate whole referable attributable attributableification moderate the bank pacification to lose showing the equality of coin privation which accumulates to $1044. Before he could ponder preliminary detached $1044 moderate the Audience, the un-deposited returns that are redundancy of 3,795.51 would be pondered moderate separate portraiture.  

    Besides, there can be subjects involving transposition of inner moderates or the policies and procedures that entertain been settleed moderate the attached to fit exactness of the inner financial procedures.  However, the attached must incorporate such moderates to determine that they are followed to the death. Moderate prompting, some of the moderates that the Audience can utensil include; having ways to fit exactness, reliability, and entireness of whole financial and propositioning history; facilitating the protection of the attached’s proceeds twain exoteric as courteous as non-exoteric proceeds by settleing care of proceeds to restricted employees in the attached; to settleing Befitting inner moderates execute secure that the structure attains its objectives (Yee, 2016). The other moderate is having befitting moderates to determine opposediation of duties shapeless employees in the audience and fit the settlement of dogged idiosyncraticnel to convey quenched verity. Lastly is to entertain in locate plans to determine disclosecure of bearing financial referable attributable attributableification on span, thus whole of these moderates are referable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable applied in Daisey audience.

    Therefore, having referable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable entireay in locate cogent inner moderate course, moderate Daisey, there are opposed causes of the inner moderates which were violated and these include; Dogged inner verity becaportraiture that the currencyier who is liable moderate currency collation had to execute  the bank pacification. Veritys entertain to be manufactured by an separate dogged of the currencyier. When such differences befall, there is demand to carry whole element into the care of the superintendence moderate cogent preventative actions. There is no opposediation of roles past the attached has in-singular the achievement of a currencyier and sizekeeper. The currencyier in this subject has the accessibility and cherishing of whole history of the attached and organizes bank pacification. The caexplanation of opposediation of duties s an sign of removal of strive, thus the separate who entireays the transactions in archives moderate the audience has to be opposed from the idiosyncratic who is in direct or the warder of the history.

    Another ponderation moderate having bald inner moderate can guide to filching of coin as drawed in the subject of underproposition manipulated by the currencyier. On the similar subject, by having whole functions manufactured by the currencyier would average that at any consecrated span he conquer apprehend that no singular conquer resurvey the financial history and accordingly, it may be cumbersome moderate him to be caught in his deceptive concern. This audience would likely to complicate in poorly determination making when it relies on the sizes that are referable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable cogently superintendence. Another consequence is weak to harmonize bank propositions which cece product to depressed spending future a powerful shortfwhole of currency run thus facilitating stagnation as courteous as subjects of repudiation (Yee, 2016). Any currency that is conventional on daily account has to be counted, recitative, as courteous as banked to yield an assertion that there conquer be no appearance of robbery. As a product of rare inner moderates, Bret undertook the un-deposited currency of $ 3,795.51 moderate separate portraiture as courteous as he took further $1044.00 from the attached which could entertain been avoided by having an inner moderate.

    Conclusion

        Daisey Audience has to entireay in locate measures to minimize the expenses that would entertain incurred on employee hire.  The attached substance most advantageous is an sign that the attached would entertain opposed sources of proceeds that has to be portraitured in the harvest and utensil befitting moderates. In subject, Daisey Audience has to entireay in moderate with functional as courteous as propositioning, there cece be some financial repercussions if the Audience has to endue on getting inner moderates to determine that there is no demand to entertain singular employee to attempt whole the moderate of the procedures. By coercionthcoming guidelines that would fit cogent portraiture of proceeds which would so determine insurrection in impedes substance courseed as courteous as procedures that would entertain computers protected and referable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable attributable grace further exposed to any abstraction (John Wiley & Sons, Inc 2014). Accordingly to determine that whole the operations discurrent audience are carried quenched cogently withquenched disadvantage or recognition of malpractice, there is demand to entertain the attached entireay in locate original inner moderate course that conquer confirm whole the vulnerabilities discurrent the financial and propositioning history so as to fit composition of history, single-mindedness shapelessst the staff shapeless other attributes.

    Reference

    John Wiley & Sons, Inc.(2014). Abstraction, Inner Moderate, and Currency

    Kimmel, P. D., Weygandt, J. – J., & Kieso, D. E. (2016). Financial Propositioning: Tools moderate Concern Determination Making (8th Ed.).

    Yee, B. (2016). Functional and inner propositioning moderates