What Should Be Internal Control Over Cash Receipts?


5 Answers

Amen Bukhari Profile
Amen Bukhari answered
When cash is received, it should be acknowledge by means of printed receipt which should have a counterfoil or a carbon receipt. The receipt should be consecutively numbered. The unused receipt should be cancelled and must not be detached from the counterfoil. No blank counterfoils should be accepted. As soon as cash is received, it should be entered in a rough cash book or dairy.

Remittances should be opened by cashier in the presence of a responsible officer. All cheques received should be crossed. Automatic tills or cash registers are very useful for checking receipts. All the receipts of the day should be deposited in the bank at the end of the day or the next morning. Bank reconciliation statement should be prepared frequently by the cashier and also by some one else. The cashier should not have any control over the ledgers.

Petty cash should be organized under the imprest system. The methods of recording the cash should be so organized that chances of misappropriation are reduced to a minimum. If travellers are permitted to collect money on behalf of the company, the issue of receipts by them and deposits of such moneys into the bank should be carefully controlled
Steven Vakula Profile
Steven Vakula answered
The internal control over cash is the separation of the functions of cash. That being the person that pays out the cash does not reconcile the cash box. The person that reconciles the cash box does-not issue the new check for the cash box or make the bank deposit of cash in the bank. It is b separating the different functions of cash, counting, making deposits, etc., that control is gained over the handling of cash. Since cash by it's nature is a high risk asset since it tends to disappear and is easily taken, the roles of those handling th cash are separated thus shifting responsibility to different persons and as direct effect minimizing the chance of collusion and theft.
Anonymous Profile
Anonymous answered
What internal controls are present where a cashier receives cash and operates a machine that ejects serially numbered tickets and give to the customer and this customer hands the ticket to the door attendant in a theater?
Anonymous Profile
Anonymous answered
Advise on establishing a method or system for internal control of cash receipts of business.

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