Dear Mr. Rush

Our investigation of Rush Inc. a local Boutiques, for the year of 2015 indicated a discrepancy between the sales amount and the bank deposit which we believe you could solve:

* Revising the internal control procedure

Internal Control

According our observation, five salespeople have been assigned their own cash drawers, which are convenient for them to handle the cash transaction; they also prepare hand-written receipt in cash transaction. Furthermore, one of the salespeople, Robert Chancery counts and reconciles each cash drawer at the end of the day, and he enter the sales records into the receivable account in the Excel. Both system and computer are not required passwords to access. Another salesperson Melissa Money handles bank deposit tickets and takes the deposit to the bank.

First of all, five cash drawers with hand written receipts are hard to monitor because every salesperson could have chance to steal from company without responsibility. Secondly, only one person handles cash and the account, could not create the power balance environment to avoid fraud.

Fortunately, those problems are not difficult to concur, the first action is centralized the cash drawer to one, and only authorized Robert Chancery in charge; because the scale of store is not so big, downsize the drawers number from five to one is not only easy to monitor, but also clarifying the responsibility.

The second action is asking someone else, besides Robert and Melissa, to manage the receivable account, and setting the password on the system; only the designate person knows the passwords. Moreover, this person has to verify the cash amount with Robert, enter the sales into system at the end of day. If the discrepancy is happened, the problem is easy to fix.

If you have any issue regard of the internal control, we are glad to hear your opinions.