United Way of America

Case 6C United Way of America Discuss the primitive and Cost-effective Internal Controls that Charitable Organizations Could Implement to Reduce Their acquire to Theft Losses. The fundamental and cost-effective intrinsic controls that charitable organizations could go through to reduce their exposure to theft losses allow in the pursuance categories: 1.Basic ingrained controls. Basic Internal Controls The basic internal controls, including: (a) segregation of duties, (b) rungs qualification requirements and background checks, (c) bud ca-caary controls, (d) establishing an audit committee, (e) establishing Code of Conduct, (f) establishing whistleblower policies, and (g) setting tone at the top, will be addressed as below. Segregation of duties. The scheme underlying segregation of duties is that individuals should not be put in situation in which they could both perpetrate and c over up fraudulent activity by manipulating the accounting records (Knapp, Rittenberg, Jo hnstone, & Gramling, 2011, p.205). Duties within a function of a charitable organization should be spaced so that one soulfulness does not perform manage from the beginning to the end of a process. The principle of segregation is of import with regard to both income and expenditure, and capital transactions.

Organizations should catch that no headliner individual is responsible for receiving, recording, securing and depositing incoming funds, or writing and soft touch checks (Cuomo, 2005). For example, if the person who records incoming hard currency is the same person who checks that cash paid 2.Controls over incoming funds. 3.Controls over expenditure. 4.Control over asset s. in is recorded on the bank statements, i! t would not be slow to detect any dishonesty. Mistakes are more in all likelihood to go undetected if a person checks their own work. rounds qualification requirements and background checks. Charitable organizations need to ensure that their staff or board members should be competent, properly...If you want to get a full essay, order it on our website: OrderEssay.net

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