Explain the internal control procedures for the clubs fund


The Soccer Club decided to sell coupon books as a fund-raising activity. The books allow users to enjoy restaurants, entertainment, and services such as oil changes, at substantial discounts. The club bought 100 books for $16 each, and members will sell them for $20. About 20 members attended the last club meeting, and most took one or two books to sell. Since the club had already paid for the books and didn't have other immediate cash needs, members do not have to pay for the books until they sell them.

Extra books are stored on a book shelf in the club's on-campus office. The office is in a great location with plenty of student traffic. It is shared with the Marketing and Information Systems clubs. Each club has four sets of keys that are used by its officers and members.

As students sell books, they bring the cash or checks to the club's office. Students with unusual class schedules who arrive when the office is locked can put payments under the door. Payments are stored in a desk drawer until the treasurer has time to make a bank deposit. Students can pick up more books to sell as needed.

(a) Indicate the weaknesses in internal accounting control in the club's fund-raising plan.

(b) Indicate improvements in internal control procedures for the club's fund-raising plan.

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Accounting Basics: Explain the internal control procedures for the clubs fund
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