Professional Documents
Culture Documents
No 7CIS
No 7CIS
Corrections
Implement formalized procedures (in
addition to the companys bylaws)
reinforcing the policy that only the board
of directors can authorize long-term
securities transactions.
All checks should be forwarded to the
group that normally opens, stamps, and
logs incoming checks, and the checks
should be recorded in the cash receipts
book at time of receipt.
The interest and dividend checks
(entries) should be reconciled by the
accounting department to the monthly
brokers statements. These statements
should be kept on file, to assure that all
checks have been received, deposited,
and accounted for.
The accounting department must
undertake the reconciliation of the
differences and implement appropriate
brokers statements.