MGCR 211 Lecture Notes - Lecture 14: Cash Cash, Internal Control, Bank Statement
9 Feb 2018
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Chapter 7 - internal control and cash (25/10/16) Control activities : forms the backbone of a company"s effort to address the risks it faces, control activities that apply to most companies include - Activities: only 1 person is authorized to perform a specific task, to identify who is responsible if errors are made. Documentation: original evidence transactions kept, prenumbering - prevents a transaction from being recorded more than once, or not recorded at all. Physical controls: physical measures to protect assets from theft and vandalism (passwords, access cards) Control activities over cash receipts : cash receipts come from - cash sales, cheques received, receipt of interest, rents, dividends, investments by shareholders, bank loans, proceeds from sales of assets. Controls: only, different, remittance, store cash in designated personnel handles cash individuals record cash receipts and handle cash advices, cash register tapes, and deposit slips/ confirmations safes and bank vaults with limited access, cash registers.
