Cookie Creations (Continued)
Natalie is struggling to keep up with the recording of her accountingtransactions. She is spending a lot of time marketing and selling mixers andgiving her cookie classes. Her friend John is an accounting student who runshis own accounting service. He has asked Natalie if she would like to have himdo her accounting.
John and Natalie meet and discuss her business. John suggests that he do thetasks listed below for Natalie.
- Hold cash until there is enough to be deposited. (He would keep thecash locked up in his vehicle). He would also take all of thedeposits to the bank at least twice a month.
- Write and sign all of the checks.
- Record all of the deposits in the accounting records.
- Record all of the checks in the accounting records.
- Prepare the monthly bank reconciliation.
- Transfer all of Natalies manual accounting records to his computeraccounting program. (John would maintain all of the accountinginformation that he keeps for his clients on his laptopcomputer.)
- Prepare monthly financial statements for Natalie toreview.
- Write himself a check every month for the work he has done forNatalie.
For Part I of the assignment, identify the weaknesses in internal controlthat you see in the system that John is recommending. Can you suggest anyimprovements if Natalie hires John to do the accounting?
Part I should be a minimum of two pages in length. Please use APA format.While there are no required resources, please be sure that any sources usedhave proper citations.
The following resource(s) may help you with this assignment.