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Can Anyone Explain The Internal Control System Of Cash Sales?

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abdul rehman Profile
abdul rehman answered
The salesman can sell products over the counter. The sale book can be prepared on the basis of cash memos issued by the staff. The sales staff should not handled cash. All cash receipts must be handled over to the cashier. Accountant can make entries in the books of accounts. Another person can deposit cash. Cash register is maintained in large retail shop. There is a need of secrecy for its working. The main equipment and attachments must work without any interference from employees. The auditor can check carbon copies of cash sales. The copies can be used as a basis of determining total sales for a particular period. The goods are handled over to the customer along with cash memo.

The officer sales must check and sign the cash memo at the time of delivery of goods. One copy is kept for determining total sales. The sales summary must be presented and sent to sales manger. The sales summary must be prepared and sent to sales manager. The sales summary must tally with the cash received from customers. The sales officer can check the cash memo for the day. The sale summary should be examined. The cash collected must tally with the cash memo as well as total sales summary for the day.
Anonymous Profile
Anonymous answered
By segregation duties, Authorisations, all record must be record by different person,
bank the cash immediately, pre sequence number .
Staff should write down how much cas received , and summary of item have been sold.
Manager should sign it before cash drop to safety box cash which the only cashier can open in
Anonymous Profile
Anonymous answered
The objectives for internal controls dealing with cash receipts include:

1. All cash sales are accounted for; and
2. Recording and Safeguarding cash received

Basic controls include:

With respect to objective 1. :

Record of cash sales - cash sales should be recorded at the time they are made by either cash sales notes (pre-numbered) being made out at the time of each sale, or the amount of the sale being recorded on a till roll or tape in a cash register. A form of check that the sale has been properly recorded is imposed by requiring a copy of the sales note to be given to the customer, or by ringing up the amount in the cash register in his presence. Cash sale notes should be serially numbered, preferably by the printers, and their issue and usage properly controlled.

With respect to objective 2:

Records of remittances received - records of cash and cheques received should be repared in detail when the mail is opened.

Reconciliation of records - the initial records should be agreed with the principal cash book (if different from the initial records), bank statements and bank paying-in slips, for example as part of the bank reconciliation procedures.

(reference - Student's manual of Auditing V.R.V Cooper - Second Edition - 1975)

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