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Phar mor case study solution

04/10/2021 Client: muhammad11 Deadline: 2 Day

CALCULATOR PRINTER VERSION NEXT 4ВАСK Problem 8-01A Bolz Office Supply Company recently changed its system of internal control over cash disbursements. The system includes the following features. Instead of being unnumbered and manually prepared, all checks must now be prenumbered and prepared by using the new accounts payable software purchased by the company. Before a check can be issued, each invoice must have the approval of Kathy Moon, the purchasing agent, and Robin Self, the receiving department supervisor. Checks must be signed by either Jennifer Edwards, the treasurer, or Rich Woodruff, the assistant treasurer. Before signiing a check, the signer is expected to compare the amount of the check with the amount on the invoice. After signing a check, the signer stamps the invoice PAID and inserts within the stamp, the date, check number, and amount of the check. The "paid" invoice is then sent to the accounting department for recording. Blank checks are stored in a safe in the treasurer's office. The combination to the safe is known only by the treasurer and assistant treasurer. Each month, the bank statement is reconciled with the bank balance per books by the assistant chief accountant. All employees who handle or account for cash are bonded. Identify the internal control principles and their application to cash disbursements of Bolz Office Supply Company. Principles Application to Cash Disbursements Only the treasurer and assistant treasurer are authorized to sign checks. Invoices must be approved by both the purchasing agent and the receiving department supervisor. Payment can only be made by the treasurer or assistant treasurer, and the check signers do not record the cash disbursement transactions. Checks are prenumbered. Following payment, invoices are stamped PAID Blank checks are kept in a safe in the treasurer's office. Only the treasurer and assistant treasurer have access to the safe. Checks are imprinted by a machine in indelible ink The check signer compares the check with the approved invoice prior to issue. Bank and book balances are reconciled monthly by the assistant chief accountant. All employees who handle or record cash are bonded By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

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