Transparency Master 6-9

VOUCHER SYSTEM

~

Head cashier

 (or treasurer)

 for deposit in

the bank

Accountant

to record daily

sales

cash

Cashier rings up customer sales on a cash register

Register tape

Risk assessment:

Identify and minimize internal control risks.

2.

 1.     Control environment:

Management attitude should be committed to ethical           business practices and to following established control  procedures.  -

3.

Control procedures:

Employees should be adequately trained and supervised. Rotate job duties or require mandatory vacations.

Clearly define job responsibilities and keep employees accountable.

Separate responsibilities for related operations.

Separate operations, custody of assets, and accounting. Use proofs and security measures:

Immediately deposit all cash in a bank account.

Use cash registers to record sales.

Have employees bonded.

Install security cameras or hire security guards.

4.

5.

Information and communication:

Gather and communicate appropriate information to as- sess and monitor internal controls.

171

INTERNAL CONTROLS -- 

CASH RECIEPTS

CUSTOMER PAYMENTS RECEIVED THROUGH MAIL

Customer

payment

Mail room clerk

1) Opens customer payment

Mail room                                                   2) Compares amount on check to remittance advice

3) Stamps For Deposit Only on check

4) Prepares payments received

list - 2 copies

Payments              Payments             Customer

received list         received list           checks

    Remittance

     advice

Accounts                   General                       Cashier
receivable                 accounting         

Gives                             Records cash                 Deposits

customer                       received in                       checks

credit for                        cash account

payment                        and accounts

                                      receivable account