You are holding a concert in your area. Assume you organize as a partnership, with each member of your group contributing $5,000 in exchange for an ownership interest and a share of the profits. Therefore, each of you is risking some money on this venture. Assume it is April 1 and that the concert will be performed on June 30. Your promotional activities begin immediately, and ticket sales start on May 1. You expect to sell all of the partnership’s assets, pay all the liabilities, and distribute all remaining cash to the group members by July 31.

Requirements

Write an internal control manual that will help to safeguard the assets of the business. The manual should address the following aspects of internal control:

1. Assign responsibilities among the group members.

2. Authorize individuals, including group members and any outsiders that you need to hire, to perform specific jobs.

3. Separate duties among the group and any employees.

4. Describe all documents needed to account for and safeguard the company’s assets.