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This procedure leaves room for error between the purchasing agent and the treasurer. If the money is missing or bills are not being paid it will be more difficult to see where and with whom the error occurred. The third weakness that I found was that the checks were kept in an unlocked file cabinet. Idaho Company is obviously not safeguarding its assets or trying to prevent theft. The fourth and final weakness that was present was that the account was reconciled by the treasurer. This does not provide any sort of security for the company. The accounts should not be reconciled by the check issuer...
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Common topics in this essay:
- Accounting System Controls
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