Evaluate methods of controlling stock

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Task - Bread 4 Breakfast (B4B) Enterprise

There are a number of ways in which errors can be prevented or at least minimised in accounting transactions. Many of these also prevent deliberate fraud. These internal control systems include the safeguarding of company's assets, especially stocks and cash. Bank reconciliation is used to prevent fraud and theft.

Bread 4 Breakfast (B4B) Enterprise's bank statement shows a balance of $100 overdrawn. The bank statement includes bank charges of $50, which have not been entered in the cash book. There are unpresented cheques totalling $500 and deposits not yet credited of £900. The bank statement incorrectly shows a direct debit payment of $80, which belongs to another customer.

Evaluate methods of controlling stock and cash in a business and services environment and state bank balance in the cash book.

Reference no: EM132099341

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