mr. melkonian

you want to make sure you protect your assets

ensure accurate data, efficiency, adherance to policy

if it grows however... necessary to manage the business

they're likely to take advantage if the opportunity presents itself

unnecessarily

accounting documents independent of each other - work must agree

shouldn't also physically control money

2 people should be present when negotiable assets are dealt with (things to convert to cash)

only a few key employees should be able to do this

ensure rules are followed, weakensses are found/addressed

should be easy to tell who is responsible for mistakes

why?

falsified accounting records

same person shouldn't handle cash and keep records of cash

two or more people do illegal activities conspiring together - both make lots of money

keeps cash in the office to a minimum - theft is prevented and discouraged

the money you earn each day should be fully deposited - NOt for paying employees on the spot

records this way correspond with bank records

can only be credited to business' bank account and can't be cashed another way

teller at bank gives you a duplicate copy/online confirmation when you deposit

compare with your numbers-make sure it's accurate

you and the bank keep tabs on numbers... should be the same right??

routine procedure trying to figure out why numbers aren't the same

statement showing the difference between the two balances 

outstanding cheques most likely candidate for errors

cheque issued by the company but not yet cashed by the bank

recorded immediately in our notes - takes a while for it to be updated with the bank

deposit made and entered in the books of the business on the last day 0f bank statement coverage

debit/credit memo - interest/service/authorized transactions

someone made a mistake