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Working in a single- Physician medical office, Tom Jefferson serves as cashier for the office, makes...

Working in a single- Physician medical office, Tom Jefferson serves as cashier for the office, makes the daily bank deposit, and is responsible for the monthly bank reconciliation. What recommendations would you make to improve internal control in this area?

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Answer #1

In this working style it is recommended to segregate the responsibility and duties among different person in such a way that the work done by the one person will be checked by the another person performing the other parts of the function.

If a person is collecting the cash, the other person should be responsible to deposit the cash into bank and another person should account it in the books of account and someone else should perform bank reconciliation. There is less chance of fraud because one person ' s work will be checked by the other person.

If it is not possible for an entity to appoint so many person for single job of cash , then there must be job rotation in which different person will perform the same job at different time period.

So no single  person will be performing any transaction from start to end.

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