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Bank and cash

Key controls to minimise risk:

Segregation of duties between different functions

Reconciliations

Daily cash ups

Physical security

Personnel practices

Controls and risk

Receiving of cash

Mail

Post must be opened and counted by

two people

Recorded in mail register/remittance

register by those who received it

The person to whom it is handed to

should sign as a proof of receiptSafeguarding of money

Should be locked in a vault

Banked as soon as possible

Proper stationery control

ocked away

Receipt! cash sales/invoices etc" are

numerically recorded

Deposits

#mounts should be banked daily e$cept

petty cash

Deposits slips to be made out by thecashier not the employee responsible for

opening posts

Bank deposits should be reviewed

regularly and gaps in daily banking

between should be investigated by

management

%ashier should reconcile che&ues and

cash remittance register and receipts

before accepting them

The remittance register and receipts

issued should be reconciled to bank

deposits by an independent supervisory

Recording

The cash receipts 'ournal should be

written up on daily basis

Supervisory stuff should review the

cash receipts 'ournal for missing dates

and date gaps in se&uence of receipts

Reconciliation of

%ash book by independent

employee of recording cash (ueries by debtors should be

Risk

Payments may not be banked due to

theft or carelessness

Deposits may never recorded/recorded

timeously

Recorded deposits maybe inaccurate

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investigated by employee

Other controls

Pre)numbered receipts should be issued

for all received

Segregation of duties for receipts and

recording of money #de&uate insurance should be taken

against theft

Post)dated che&ues should be recorded

in a post)dated che&ue register and

strictly controlled

arge amounts of cash should not be

kept on hand

Security companies should remove cash

from the premises

*anagement should perform surprise

cash counts

There should be notice re&uesting

customers to validate the change they

are receiving

Surveillance cameras in place

Staff should have background checks

+ach cashier responsible for his or her

own funds

The cash register should be opened

once a sale is made or with a senior

manager key

Payment

Cheque payments!"#

Should be signed , seniors

Seniors should agree on the che&ue

Should be issued in strict numerical

se&uence

#ll che&ues must be accompanied by

the supporting documentation

-nce a payment is made!

documentation should be stamped paidand cancel it

%he&ues should be kept in a safe place

.f a che&ue is cancelled it should not be

thrown away

Dedicated +T channel

.f a che&ue is made out incorrectly! it

should be stamped 0cancelled1 and

signature torn off

Signed che&ues should not be returned

to the preparer but should be mailed to

an independent employee

#ll che&ues should be recorded in a

Risk

.nvoice paid twice

Payment to fictitious creditors

Payment of incorrect amount

2nauthorised payments

Discounts lost due to late payments

%he&ues may be incorrectly made out

.nvalid payments made out

Payments recorded inaccurately

Payments of goods not received

Pay wrong supplier

Pay incorrect amount

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cash payment 'ournal in a numerical

se&uence

The cash payment 'ournal should be

reviewed regularly by management! for

missing che&ues and unusual payments

Reconciliation of the cash book to thebank statement should be performed

and reviewed monthly by a staff

member independent of banking

function