Internal cash control is very important for any company. Without effective methods in place to ensure that funds and resources are used ethically and efficiently, a business can lose money or run into many other problems. Through the proper establishment of responsibilities, segregation of duties, documentary procedures and security measures, any business should be able to conserve its funds and be confident that its employees are producing accurate and ethical results. In the exercise detailing cash disbursements within the Idaho Company, one could find major weaknesses. The first of these weaknesses in their internal control of cash disbursements would concern the checks they use to make payments. These checks are not pre-numbered and are kept in an unlocked book. To ensure internal control of cash disbursements, a business should have pre-numbered checks for record-keeping purposes and should always keep its checks in a secure area to which only specific individuals would have access. The next issue to resolve with Idaho Company is establishing responsibilities for paying bills and accessing funds. In this scenario, two people share responsibility for paying bills. Only the treasurer should have this responsibility and the person responsible for paying the bills should never be responsible for reconciling payments. In order to inform Idaho Company of the breakdown of internal cash control within the company, the following memo has been created:------MemoTo: President of Idaho CompanyFrom: Justin D LoweCC: Chief Financial OfficerDate: 9 /6/2008Subject: Internal Cash Control SuggestionsIn order to help resolve Idaho Company's internal cash control problems, Suggestions Inc. has offered some suggestions. TreasurerFirst, we believe that Idaho Company should create a formal and effective establishment of accountability. The treasurer should be solely responsible for paying bills and ensuring that checks are kept secure at all times. The treasurer should not be responsible for reconciling bank or credit card statements since it is this person who writes the checks. The work of receiving resources and marking invoices paid should be assigned to a company accounts receivable representative. Purchasing Agents The purchasing agent should only be responsible for purchasing resources for the company. This person should be authorized to pay bills, reconcile statements, or receive resources when they join the business. The purchasing agent does not and should not have access to checks or check writing privileges..