System of internal control in respect of small and manufacturing concerns and other aspects of business are explained below:
Small Concerns:
• All incoming correspondence should be opened by a responsible official.
• All remittances in the form of cheques, drafts should be crossed and marked accounts payee only and deposited into the bank on the next day.
• All payments should be sanctioned by responsible officials.
• Wages and salaries sheets and note books should be carefully checked and payment made in the presence of person knowing the labors and clerks.
• A complete record of all goods received and send out should be maintained and physical count should be carried out at regular intervals.
Manufacturing concerns:
The cashier should have no access to the ledgers and the ledger keeper should not maintain the books of original entry.
• Al correspondence received should be daily opened by a responsible official.
• All remittances received in the form of cheques, drafts should be cross marked accounts payee only entered into a cash diary and handed over to the cashier.
• All receipts should be banked daily or on the next day and a periodicals bank reconciliation should be prepared.
• Cash sales should be adequately supervised.
Small Concerns:
• All incoming correspondence should be opened by a responsible official.
• All remittances in the form of cheques, drafts should be crossed and marked accounts payee only and deposited into the bank on the next day.
• All payments should be sanctioned by responsible officials.
• Wages and salaries sheets and note books should be carefully checked and payment made in the presence of person knowing the labors and clerks.
• A complete record of all goods received and send out should be maintained and physical count should be carried out at regular intervals.
Manufacturing concerns:
The cashier should have no access to the ledgers and the ledger keeper should not maintain the books of original entry.
• Al correspondence received should be daily opened by a responsible official.
• All remittances received in the form of cheques, drafts should be cross marked accounts payee only entered into a cash diary and handed over to the cashier.
• All receipts should be banked daily or on the next day and a periodicals bank reconciliation should be prepared.
• Cash sales should be adequately supervised.