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You have been asked by the board of ustees of a local church to review its accounting rocedures. As part of this review you have

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You have been asked by the board of ustees of a local church to review its accounting rocedures. As part of this review you have preared the following comments about the collections hade at weekly services and record keeping for nembers' pledges and contributions: 1. The church's board of trustees has delegated responsibility for financial managemeni and audit of the financial records to the finamce committee. This group prepares the annual budget and approves major cash disbursements but is not involved in collections or record keeping, No audit has been considered necessary in recent years because the same trusted employee has kept church records and served as firancial secetary for 15 years. 2. The collectional the weed yormice is taken by a team of ushers. The head usiter connts the collection in the camech ffice following each servics. Hethen pacer the collection and anotation of the-amedint in the churncheafe. Next morming the fantriat sectetaty opens the safe 3. At their request a few members are furnishe prenumbered predated envelopes in which to insert their weekly contributions. The head usher removes the cash from the envelopes te: collection and discards the envelopes. Ne rellection ind discards the envelopes. Nith the envelopes, and the envelope system is not encoureiged. 4. Each member is aiked to prepare a contribution pledge card annually. The pledge is r ganded as a morel commeviment by the nember is contribute a stated weekdy amount Based the finasidiel wecnetary furniches a lefter to members. upon request, to euppost the tax dedoctiblitity of thuir covetributions: Rechuired Khentify the weakivewess and reconmend impeovements in procedutes for colloctions mede at weridy and conteributionse Hustees of a local church to review its accounting rocedures. As part of this review you have prelared the following comments about the collections nade at weekly services and record keeping for nembers' pledges and contributions: 1. The church's board of trustees has delegated responsibility for financial management and audit of the financial records to the finance committee. This group prepares the annual budget and approves major cash disbursements but is not involved in collections or recond keeping. No audit has been considered necessary in recent years because the same trusted employee has kept church records and served as financial secretary for 15 years. 2. The collection at the weekly service is taken by a team of ushers. The head usher counts the collection in the church office following each service. He then places the collection and a notation of the amount in the church safie. Next moming the financial secretary opens the safe and recounts the collection. He withholds about $100 to meet cash expenditures during the coming week and deposits the remainder intact. In order to facilitate the deposit, members who contribute by check are asked te draw their checks to cash. 3. At their request a few members are fumished prenumbered predated envelopea in which to insert their weekly contributions. The head usher removes the cash from the envelopes to be counted with the loose cash included in the collection and discards the envelopes. No record is maintained of thessuance or return of the envelopes, and the envelope system is not 3. At their request a few members are fumished prenumbered predated envelopes in which to insert their weekly contributions. The head usher removes the cash from the envelopes to be counted with the loose cash included in the collection and discards the envelopes. No record is maintained of issuance or return of the envelopes, and the envelope system is not encouraged. 4. Each member is asked to prepare a contribution pledge card annually. The pledge is regarded as a moral commitusent by the member to contribute a stated weekdy amount. Based on the amonands shown on the pledge cards, the finandal mecretery fumbishes a lettex to mentbers, upon reguest, to eupport the tax deductibulity of their contuibukibins

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