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    gwapagirl40's Avatar
    gwapagirl40 Posts: 31, Reputation: 1
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    #1

    Oct 11, 2012, 03:30 PM
    Company's internal control problems
    Why check signers not allowed to record cash disbursements journals and reconcile bank statement?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Oct 11, 2012, 03:37 PM
    Internal control is really checks and balances to ensure no one has the opportunity to embezzle the cash and cover it up
    gwapagirl40's Avatar
    gwapagirl40 Posts: 31, Reputation: 1
    Junior Member
    		  
    #3

    Oct 11, 2012, 03:46 PM
    Quote Originally Posted by paraclete View Post
    Internal control is really checks and balances to ensure noone has the opportunity to embezzle the cash and cover it up
    What if someone prepared the checks for him. All he has to do is sign it and record it and reconcile it with bank statement. How can he embezzle funds when he does not have access to blank checks?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #4

    Oct 11, 2012, 11:32 PM
    You can't have the person doing the recording doing the reconciliation, there is more than one way to get money out of a bank account
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