Cash is one of the most valuable assets of a corporation and

Cash is one of the most valuable assets of a corporation and also the asset most likely to become stolen. It is important that a company has strong internal control policies and procedures. Receivables are also important assets of a business. Companies understand that when they extend credit to their customers there is a possibility that they will not collect the amount that is owed to them. 1. Discuss some of the internal control policies and procedures used by your current employer or a previous employer. If you don\'t have any experience with an employer, research a company and discuss some of the internal control policies and procedures they use. Public corporations are required each year to make an adjusting entry to estimate bad debt expense or uncollectible account expense. Research a public corporation, identify the name of the corporation and identify through their financial statements the method and the amount of bad debt expense for one of the years listed. Hint, you will have to read the notes to the financial statements to determine the method used to calculate the bad debt expense. 2.

Solution

1)The equal character that handles coins entering the business (custody) have to not record the receipt of that money within the accounting records.
2) The identical man or woman that signs and symptoms the checks should now not be recording the transactions into the accounting information.
Three) The equal person that reconciles the bank bills should no longer write or signal exams or make transfers between accounts.

the best example in india is state bank of india

please refer https://www.moneycontrol.com/financials/statebankindia/balance-sheet/SBI
4) The man or woman that has the authority to put in writing tests must no longer sign those checks. Consider having signatories on every take a look at.
5) Never permit the bookkeeper that enters transactions on a every day basis inside the accounting system make preferred journal entries that override the system
6) The individual that data the transactions into the accounting gadget should no longer be depositing checks at the financial institution.
7) The equal person that facts payroll ought to no longer signal the payroll checks