BUS $5003$ Module $6$ Assignment

In this assignment, you will be focusing in on the Cash Disbursement process along with identifying key

internal controls to go along with each of those key processes.

Grading: There are seven processes that you need to respond. For each of these, you suggest the

control to address the risk. Each suggested control is worth five points for a total of thirty$-$five points.

Within each of the process below, a risk will be identified. Your job is to suggest the control which can

be put in place to address the risk, while maintaining the integrity of the internal control environment:

Jeremiah Jams is currently creating their internal control environment surrounding the disbursement of

cash. Jeremiah has established the below risks he feels needs to be addressed within the cash

disbursement process:

$1.$Opening the Mail $$ Jeremiah wants to ensure that the mail is being opened by an

individual who does not have access to the accounting system to post entries.

o Suggested control$($s$)$:

$2.$Invoice processing $$ Jeremiah wants to ensure that invoices are not processed in the

accounting system prior to the department managers review and approval.

o Suggested control$($s$)$:

$3.$Voucher package preparation $$ Jeremiah wants to ensure that invoice amounts agree to

previously established purchase orders prior to payment.

o Suggested control$($s$)$:

$4.$Voucher package approval $$ Jeremiah wants proper review and approval of the voucher

package.

o Suggested control$($s$)$:

$5.$Check custody $$ Jeremiah wants to ensure that checks are secure and are only

accessible by a small number of employees.

o Suggested control$($s$)$:

$6.$Check payments $$ Jeremiah wants to ensure that individuals authorized to sign checks

do not have access to process them.

o Suggested control$($s$)$:

$7.$Reconciliation $$ Jeremiah wants to ensure checks were subsequently cashed.

o Suggested control$($s$)$: