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    appropriate controls to cover cash disbursements

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    Design a proposal for appropriate controls to cover cash disbursements.

    Note: this assignment must be based on the Apollo Shoes case ( Auditing & Assurance Services).

    Level: Master in Accounting

    © BrainMass Inc. brainmass.com June 4, 2020, 1:38 am ad1c9bdddf
    https://brainmass.com/business/cash-controls/appropriate-controls-to-cover-cash-disbursements-411442

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    1. Design a proposal for appropriate controls to cover cash disbursements.
    The Apollo Shoes case has a list of checks and a cutoff bank statement. It is necessary to match the bank statement with the outstanding check list to ensure that the listing is complete. The auditor finds the check number of the last check written and tries to match it with the bank statement. There is a standard form to confirm balance information with financial institutions. This type of uncertainty about the checks issued at Apollo Shoes Inc. can be avoided through a control system whereby one person authorizes check payments, another person signs checks, a third person records the payment in the books and a fourth person prepares the reconciliation. At Apollo Shoes Inc there is a large list of outstanding checks when the bank reconciliation is prepared. The company must have in place a control system in which there are strong policies with regards to who can sanction payments. Apollo must have in place a policy of who can authorize the payments that are outgoing. If necessary, it can be a senior manager or the head of the department ...

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