1. You are a business consultant providing information and advice to future smal

Question

1. You are a business consultant providing information and advice to future small business owners. Controls are especially important with respect to cash. Three of them are clear assignment of responsibility, specific procedures for documentation, and independent internal verification of the data. Create a PowerPoint presentation for a seminar aimed at future business owners who will be dealing with large amounts of cash. Explain the importance of the three areas of cash control and make recommendations for procedures that could be implemented.

Please, Please put in PowerPoint format...

Please provide references if possible.

Thanks, in-advance

Explanation / Answer

Cash flow makes business running smoothly. In any business there is need to control and monitor cash transactions to guarantee the efficient operation of the business is vital. Cash is a vital component to generating organization profit. These cash are used to pay creditors, provide asset and growth etc. hence cash is unique that is readily convertible into any other form of asset along with that cash is also the asset that susceptible to fraud and abuse. So, the Cash management refers to the gathering, focus and expenditure of cash.

Cash control consists of all methods to measures business. There are several methods to control the cash but we are discussing only three of them. These are assignment of responsibility, specific procedures for documentation, and independent internal verification of the data. Let discuss one by one:

1. Assignment of Responsibility: this is an essential characteristic of internal control that includes the authorization and approval of transactions by giving responsibility to specific individuals. This make easily handle because if Control become effective when it handle by one person.

2. Documentation Procedures – this is another important method where need to main the Documents of transactions and events have occurred for evidence purpose when signatures are added to the documents that establish responsibility for the transactions. So it should be maintain with number and accounted form like checks and invoices. These accounting entries should forward to the accounting department to maintain recording timely.

3 Independent Internal Verification - Independent internal verification involves evaluation, contrast, and reunion of data prepared by employees. These should be maintaining periodically and on a revelation basis to review the activities of departments and individuals. If cause any error and exceptions then should be reported to a management team that will take appropriate action. In some organization for internal auditors, employees evaluate it continuously for the effectiveness of the company system.

These are the recommendations of procedures that could be implemented for Cash control:

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