Internal Cash Control is very important for any business. Without effective methods to ensure that funds and resources are used ethically and efficiently, a company could lose money or run into many other problems. Through proper institution of accountability, segregation of duties, documentation procedures and security measures, any company should be able to maintain its funds and feel confident that its employees are producing accurate and ethical results. In the exercise detailing the disbursement of money within the Idaho Company, one might find some major weaknesses. The first of these weaknesses in internal control over cash disbursements would be the checks used to make payments. These checks are not pre-numbered and are kept in an open pad. To ensure internal control over cash disbursement, a company must have pre-numbered checks for record-keeping purposes and must always store checks in a secure area where only specific persons may have access. The next issue that needs to be addressed with the Idaho Company is establishing accountability when it comes to paying bills and having access to funds. In this scenario there are two people who have split the responsibility of paying the bills. Only the treasurer should have this responsibility, and the person responsible for paying invoices should never be responsible for reconciling payments. To inform Idaho Company of the discontinuation of internal cash control within the company, the following memo was created:------MemoTo: President of Idaho CompanyFrom: Justin D LoweCC: Chief Financial OfficerDate: 9/6/2008Subject: Internal Cash Control Tips To help resolve Idaho Company's internal cash control problems, Suggestions Inc. has provided some tips. Treasurer First, we believe that the Idaho Company must create an official and effective accountability institution. The treasurer should be solely responsible for paying bills and ensuring that checks are kept safe at all times. The treasurer should not be responsible for reconciling bank or credit card statements since this person is the one who writes the checks. The task of receiving resources and marking paid invoices should be assigned to a company accounts receivable representative. Purchasing Agents The purchasing agent should only be responsible for purchasing any resources for the company. This person should be allowed to pay invoices, reconcile statements, or receive assets when they join the company. The Buyer Agent does not and should not have access to checks or check writing privileges.