1. CASH Agapito, Paul Dela Cruz, Pauline Lucman, Fatimah Torio, Jeandie Agapito, Paul Dela Cruz, Pauline Lucman, Fatimah Torio, Jeandie

2. Available for immediate use/ general use Involves bills, currency, notes, coins, checks (unless bounce) postal money orders. Can be on hand or in bank An asset most susceptible to improper diversion and use. A medium of exchange A store of value A unit of account NOT A LEGAL TENDER - particular item or medium of payment that can be used extinguish a debt, or meet a financial obligation. Available for immediate use/ general use Involves bills, currency, notes, coins, checks (unless bounce) postal money orders. Can be on hand or in bank An asset most susceptible to improper diversion and use. A medium of exchange A store of value A unit of account NOT A LEGAL TENDER - particular item or medium of payment that can be used extinguish a debt, or meet a financial obligation. WHAT IS CASH?

3. a.) CASH ON HAND – customer’s checks - cashier’s or manager’s checks - traveler’s checks - bank drafts - money orders b.) CASH IN BANK – demand deposits - checking account and saving deposits unrestricted as to withdrawal. c.) CASH FUND - petty cash fund - payroll fund - dividend fund a.) CASH ON HAND – customer’s checks - cashier’s or manager’s checks - traveler’s checks - bank drafts - money orders b.) CASH IN BANK – demand deposits - checking account and saving deposits unrestricted as to withdrawal. c.) CASH FUND - petty cash fund - payroll fund - dividend fund CASH ITEMS INCLUDED IN “CASH”

4.  BOUNCING CHECKS - check that cannot be processed because of insufficient funds.  POSTDATED CHECKS – any checks dated in the FUTURE.  STALE CHECKS – checks not encashed within a long period of time. (more than 6 months ago)  BOUNCING CHECKS - check that cannot be processed because of insufficient funds.  POSTDATED CHECKS – any checks dated in the FUTURE.  STALE CHECKS – checks not encashed within a long period of time. (more than 6 months ago) SPECIAL CASES

5.  AT FACE VALUE! *Translate to reporting currency using SPOT RATE. SPOT RATE: - the exchange rate at the time of reporting.  AT FACE VALUE! *Translate to reporting currency using SPOT RATE. SPOT RATE: - the exchange rate at the time of reporting. HOW DO YOU VALUE CASH IN YOUR B/S?

6. CASH EQUIVALENTS

7. Short-term can be easily encashed are subject to insignificant risk of change in value purchased 3 months before MATURITY a debt instrument Short-term can be easily encashed are subject to insignificant risk of change in value purchased 3 months before MATURITY a debt instrument WHAT IS CASH EQUIVALENTS?

8. INTERNAL CONTROL

9. Under AUDITING Process and procedures to achieve the objectives/goals of an organization SAFEGUARD ASSETS - from theft or any unauthorized use. COMPLIANCE WITH REGULATION/LAW – taxes ACCURATE INFORMATION – reasonable, for reducing the risk of errors. * Sarbanes-Oxley Act of 2002 (SOX) Under AUDITING Process and procedures to achieve the objectives/goals of an organization SAFEGUARD ASSETS - from theft or any unauthorized use. COMPLIANCE WITH REGULATION/LAW – taxes ACCURATE INFORMATION – reasonable, for reducing the risk of errors. * Sarbanes-Oxley Act of 2002 (SOX) WHAT IS INTERNAL CONTROL?

10. CONTROL ENVIRONMENT - attitude of management and employees - tone at the top - dictates the risk RISK ASSESSMENT - identifying and assessing the risk and their impact in the organization - COMMON RISK: CREDIT/COLLECTABILITY RISK CONTROL PROCEDURES/ACTIVITIES - how you manage your risks - the mechanisms/ practices or procedures to address the risks that you have identified CONTROL ENVIRONMENT - attitude of management and employees - tone at the top - dictates the risk RISK ASSESSMENT - identifying and assessing the risk and their impact in the organization - COMMON RISK: CREDIT/COLLECTABILITY RISK CONTROL PROCEDURES/ACTIVITIES - how you manage your risks - the mechanisms/ practices or procedures to address the risks that you have identified 5 ELEMENTS: (CRIME)

11. INFORMATION AND COMMUNICATION - how information flows in the company in order to function effectively. - how to disseminate information MONITORING - “are we on the right track?” - you monitor what is happening in an organization for corrections. INFORMATION AND COMMUNICATION - how information flows in the company in order to function effectively. - how to disseminate information MONITORING - “are we on the right track?” - you monitor what is happening in an organization for corrections. 5 ELEMENTS: (CRIME)

12. SEGREGATION OF DUTIES - separating accounting & cash custodianship - prone to theft VOUCHER SYSTEM - disbursement function - prevent control *voucher – proof, supported by documents ELECTRONIC FUND TRANSFER - connected to payments and withdrawal - fund transfer from on account to another SEGREGATION OF DUTIES - separating accounting & cash custodianship - prone to theft VOUCHER SYSTEM - disbursement function - prevent control *voucher – proof, supported by documents ELECTRONIC FUND TRANSFER - connected to payments and withdrawal - fund transfer from on account to another COMMON INTERNAL CONTROLS RELATED TO CASH:

13. OFFICIAL RECEIPT - is issued when an entity is receiving cash BANK RECONCILIATION - detect control - a process of reconciling your cash balance per book and cash balance per bank OFFICIAL RECEIPT - is issued when an entity is receiving cash BANK RECONCILIATION - detect control - a process of reconciling your cash balance per book and cash balance per bank COMMON INTERNAL CONTROLS RELATED TO CASH:

14. KITTING - check is drawn against a first bank and depositing the same check in a second bank - covering cash shortage in the latter bank - usually done at the end of the month LAPPING - stealing & patching collections from customers WINDOW DRESSING - applies to the entirely F/S - any deliberate misstatement - untruth or falsity statements KITTING - check is drawn against a first bank and depositing the same check in a second bank - covering cash shortage in the latter bank - usually done at the end of the month LAPPING - stealing & patching collections from customers WINDOW DRESSING - applies to the entirely F/S - any deliberate misstatement - untruth or falsity statements COMMON FRAUD RELATED TO CASH: