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Acc400 Week 2 Lt

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Financial Accounting: Tools for Business Decision E-Text ACC/400 May 6, 2013 Financial Accounting: Tools for Business Decision E-Text Chapter 7: Exercise E7-2 Culotti’s Pizza operates strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making the pizzas and the large ovens in which the pizzas are baked Instructions: Identify the six principles of internal control and give an example of each principle that you might observe when picking up your pizza. (Note: It may not be possible to observe all the principles.) 1st Principle – Establishment of responsibility * Only one person is responsible for a …show more content…

Additionally, volunteers will need to take a course familiarizing would-be ushers with standard operating procedures, and reporting standards before being qualified to volunteer for usher position. This will help solidify controls for the ushers. Head Usher: While the church may not be currently experiencing anything wrong with the usher selection and volunteer system at the church, some improvements might be considered. The church might consider making the head usher a year-long term, elected by church members to create continuity, but also impose term limits – possibly every 3-4 years a head usher must take a sabbatical. Additionally, because the head usher role is so pivotal in the collection process, and it is a place where mistakes or malfeasance can easily take place; it would be helpful for the ushers and the financial secretary to be present in the collection counts, the day of, so someone outside the usher department can verify tithe counts. Financial Secretary: The most glaring issue, which opens up easy access for, would be embezzlers in the congregations check policy. All checks being written to cash basically enables anyone to cash out the check, the church, a rouge employee or volunteer, or otherwise. All checks need to be made out to the church, not to cash. It would be even better if the church went the route of many churches by allowing donors to have donations processed monthly (or weekly depending on donor preference) through

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