1. Establishment of responsibilities. Only one person handles all the finances and the petty cash is open for just about any one to manage and handle cash. Need to be retuned to no one can handle petty cash but a public accountant.
2. Segregation of duties. Their has to be some one overseeing every one in the company. Their has to be some one over seeing the accountants, the checks being written and some one controlling the petty cash. People are usually not honest and faithful about what money is being taken out.
3. Document procedures. Every thing has to be documented. Checks has to be written by ink able printer that issues serialized checks from the company. These checks can be traced and cash and expenses can be tracked. Some one has to be responsible for the petty cash, it can be easy to steal from the company.
4. Physical Control. The company uses a safe to safe guard checks held over the weekend that is over seen by the accountant. I think that this is not suitable enough. Some one differently needs to over see this procedure.
5. Independent internal verification. Every thing that is financial related is handled by one person. Some one else needs to be there to over see other finances to make sure that no one is taking anything from the company.
2. What the company is doing is starting to stream line the operations and number invoices. That is a good start but because one person handles most of the company finances it would be knowledge to have a machine that makes pre serialized checks. These checks would be very helpful for the company in terms of revenue and expenses. The company can trace where all the money is coming in and going out and who wrote the checks. The best thing that can be done is to purchase a machine because the company needs to make sure that it is on point for all its finances, in the second paragraph it clearly stated that only one person is overseeing all the financial applications. It would be very easy for that one person to make a significant amount of profit by stealing what would be untraceable.
The Essay on Any Kind Checks Cashed, Inc. v. Talcott
According to the UCC, a holder in due course is a holder who takes an instrument for value in good faith and devoid of notice of assured claims, as well as defenses on the instrument. It is imperative in the case of ‘Any Kind Checks Cashed, Inc. v. Talcott’ to determine if the holder of the instrument acted in good faith, in fair dealing as is compulsory in order to be considered the holder in due ...
3. What the company has done wrong is not having accountability for anything. The first thing that should be handled is stopping every one from going into the petty cash and taking what ever they want. In the second paragraph it said that no one was over seeing these funds. What this means is that any one can take anything. Even though it is petty cash it still has to be accounted for. What I would recommend is that some one being hired from the out side to over see the petty cash. I would also like to see some one else over see the checks that are being held on the weekends. The most important recommendation I would say is having some one else over see the treasurer and the controller who carries out the same function. Hiring some one else to take one function from that person and then hiring a manager to over see all the transactions. This way they cannot collaborate to try and cheat the company out their profits.
