The fundamental and cost-effective intrinsic controls that charitable organizations could go through to reduce their exposure to theft losses include the pursuance categories:
1.Basic internal controls.
Basic Internal Controls
The basic internal controls, including: (a) segregation of duties, (b) rungs qualification requirements and background checks, (c) budgetary 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 theory underlying segregation of duties is that individuals should not be put in situation in which they could both perpetrate and cover up fraudulent activity by manipulating the accounting records (Knapp, Rittenberg, Johnstone, & Gramling, 2011, p.205). Duties within a function of a charitable organization should be detached so that one person does not perform treat from the beginning to the end of a process. The principle of segregation is most-valuable with regard to both income and expenditure, and capital transactions.
Organizations should ensure that no maven individual is responsible for receiving, recording, securing and depositing incoming funds, or writing and sign 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 assets.
in is recorded on the bank statements, it would not be slow to detect any dishonesty. Mistakes are more likely to go undetected if a person checks their own work.
Staffs 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: Ordercustompaper.com
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