Question

Carol Nickell is the manager of Aspen Gardens and has been with the company for several years. Therefore, she is valued and trusted. Carol is in charge of recording collections on account, making the daily bank deposits, and reconciling the bank statement. As the sole manager and with responsibilities described above, she has not taken a vacation since she began working. Earlier this year, clients began complaining to you, the president, about incorrect statements. As president, you checked into the matter. Carol assured you there was nothing to worry about in this situation. She asserted that the problem was due to slow mail, which made customers payments and statements cross in the mail. However, because clients were not complaining last year, you doubted that the mail was the primary reason for the problem.

What might be some of the reasons for the delay?

What are some other problems that might begin to occur?

What will you do to remedy the problem?

What should be done to make sure such problems are avoided in the future?

Answer 1

Answer:-

What might be some of the reasons for the delay?

a portion of the explanations behind the defer separated from mailing postponement might be,

1.Delay in storing check to bank .

2. Postponement in entering the accumulation and clearing accounts receivables.

3.Delay in entering of the bank accommodating and the checks staying to be entered not followed out subsequently.

4.Delay with respect to the bank to get the checks cleared in time.

What are some other problems that might begin to occur?

Some different elements might be two much outstanding task at hand on Carol and her work weight may prompt weakness and deferral in handling works.

What will you do to remedy the problem?

• To cure the issue, the president should converse with Carol and break down her day by day exchange volume.
• Ideally similar people saving checks ought not do accounts passage and bank reconciliations.
• It will be smarter to part the activity among various bookkeepers ,this will accelerate the procedure and enhance the interior control too.

What should be done to make sure such problems are avoided in the future?

• For a changeless cure a couple of things might be done :

1. Bolt box office might be presented with the assistance of the bank. In bolt box framework, banks branches in the greater part of the client areas will have committed box where clients can drop Aspen's checks as opposed to mailing them. Bank offices will stores the checks same day. This will lessen delay in store of checks.
2. Aspen can consider executing bank compromise by electronic transfer of bank proclamation ,(If not officially done ) to affix the procedure of bank compromise.
3. Proceed with the act of part up Carol work among different bookkeepers so than Carol can center around supervision and controlling the general accumulation administration rather than transnational issues.