Week 4 team paper Essay Example | Topics and Well Written Essays - 1000 words

Week 4 team paper - Essay Example The first control mechanism is the cash register. The cash register keeps track of all the transactions and stores the money temporarily. Keeping too much cash in a cash register is a dangerous proposition because if the stored is robbed the thief will walk away with a lot of money. A control mechanism to prevent this occurrence is to cash out the register periodically. The cash out of cash register should be taken out every four hours. The person that is responsible for the money in this transaction is the manager. The manager must take out the cash and verify that the money taken out is the same amount of money that the register logged. Both the cashier and the manager must sign a paper that specifies the time and amount of money that was taken out of the cash register. Once the money is out of the cash register the manager must put the money in an envelope and store in a safe inside the office of the manager. During the transfer of money the security guard of the store must walk a nd be near the manager until the money is placed in the safe. A second procedure that must occur is for the money in the safe to be deposited in the bank. Every morning the manager must go physically to the bank and deposit the cash the store generated the past day. The security guard of the store should walk with the manager from the store to his car to provide added security. A third control mechanism to verify that no money is missing or stolen internally is performed by the accounting staff. At the end of each month bank reconciliation is perform by the accounting staff to ensure that the paper trail is accurate. The accountants must verify that the bank deposits made by the manager are aligned with the daily cash sales of the company. A second type of asset that is very valuable which is often targeted by thieves is the inventory of the company. In a retail store inventory represents the items that are available