For WizardKim-D.A.D R1
Data Analysis Response:
Responses must be substantial (several paragraphs each)
The process of cash disbursement in companies is regulated or controlled by a set of policies that detect and prevent funds misappropriation. There are various elements that are considered when determining the controls for cash disbursement. The most common and notable feature is the segregate duty, which include authorization, custody of blank checks, and recordkeeping (Attaway, 2
0
01; Rahman, 2020). The data shows that the company has one major control that requires a CFO to authorize any payments above $
10
,000. Table 1 shows the summary of the sum of payments for both authorized and non-authorized transactions by the CFO. It also shows the amount transaction in different days of the month. The analysis indicates that the authorized payments above $10,000 were only made on
3
0
th. In addition, most of the unauthorized payments were made on
15
th and
30
th days of the month. Generally, the total amount of payments that were not authorized by the CFO was higher than the total amount authorized by the CFO.
Table 1. Disbursement Summary
|
Row Labels |
Sum of AMOUNT PAID |
Sum of BALANCE |
||
|
Ab |
21 12 7.46 |
31 3.8 |
||
| 30 | ||||
|
(blank) |
633408.97 |
-80369.25 |
||
| 3 |
9999.99 |
-102.25 |
||
| 10 |
19999.98 |
-22435.25 |
||
| 12 |
-78254.24 |
|||
| 15 |
281553.77 |
36876.55 |
||
|
17 |
-4 23 5.68 |
|||
| 23 |
33754.76 |
-44439.38 |
||
|
248100.51 |
32221 |
|||
| 31 | 0 | |||
|
Grand Total |
654536.43 |
-80055.45 |
Based on the above summary, the company requires new controls for cash disbursements. The company should review the authorized number of signors other than the CFO. It should allow one or two junior finance officers to authorize other small payments on behalf of the CFO. Moreover, the authorization should carry two signatures, whereby a disbursement will need two individuals before it is complete (Attaway, 2001). Therefore, allowing two more finance officer to authorize payments would increase accountability.
Attaway, M. C. (2001). Cash disbursements control. Internal Auditor, 58(2), 21-21.
Rahman, S. (2020). Loan Disbursement Procedure of Grameen Bank.