Module 04 Discussion – Auditing Ticket Sales

You have been asked by the board of the local hockey club to review its accounting procedures. You have made the following observations in regards to cash collected for annual dues and for weekly entrance ticket sales.

  • The club’s board has given financial management and audit of the financial records responsibility to the finance committee.
  • This team prepares the budget and approves all major cash disbursements.
  • No audit has been considered necessary in recent years because the same trusted employee has kept club records and served as treasurer for 15 years.
  • A volunteer takes the ticket sales at the weekly games. The volunteer team lead gathers the funds and counts them in the club office after each game day. She then places the funds collected and a notation of the amount in the club safe. The next morning, the treasurer opens the safe and recounts the collection. He withholds about $100 to meet cash expenditures during the coming week and deposits the remainder intact.
  • To facilitate the deposit, attendees who pay by check are asked to enter “Cash” on the payee line. Members are asked to pay their annual dues to the treasurer directly or to a volunteer when they pay for their weekly ticket sales. If they pay by check, they are also asked to enter “Cash” on the payee line.
  • The volunteer at the gate is asked to attach a note to payments that are for dues instead of gate tickets.
  • Some members have inquired about having annual dues automatically withdrawn from their bank account or charged to their credit card, but the club has not established procedures that would allow payments other than by cash or check.

Identify at least three deficiencies and recommend improvements in procedures for cash received at weekly games and record keeping for members’ annual dues.

Please make your initial post by midweek, and respond to at least one other student’s post by the end of the week. Please check the Course Calendar for specific due dates.

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