1. Chapter 9.3 Accounting Controls for Cash

2. Internal Controls Where possible, two different people should be processing and preparing accounting documents independently of each other, and their work must agree.

3. Internal Controls The person who records transactions or prepares accounting records should not also control or handle the physical assets.

4. Internal Controls All assets should be kept in a safe place. Two authorized person should be present when negotiable assets are dealt with. Negotiable assets are the ones that can easily be converted to cash.

5. Internal Controls Only a few key employees should be allowed to approve and authorize transactions.

6. Internal Controls An independent public accountant should periodically carry out an audit to ensure that the accounting system is being followed correctly. If weaknesses are found, the system should be improved.

7. Internal Controls Responsibilities should be clearly established. It should be easy to tell who is responsible for errors or missing assets.

8. Procedures for the Control of Cash

9. Separate Duties

10. Deposit funds daily

11. Deposit funds intact

12. Make all payments by cheque or electronic transfer

13. Endorse cheques “for deposit only”

14. Prepare deposit slip in duplicate

15. Reconcile bank accounts monthly

18. See textbook page 358 for examples

19. Homework Review Questions 1 -15