INTERNAL CONTROL OVER CASH RECEIPTS AND DISBURSEMENTS Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are: Internal Control Principle Establishment of responsibility Segregation of duties Documentation procedures Physical, mechanical, and electronic controls Independent internal verification Other controls Code Instructions: Match the above principles to the following applications related to cash receipts and cash disbursements by placing the code in the space provided. Each code letter can be used once, more than once, or not at all. 1. Cash receipts should be deposited in bank in total daily. 2. Daily cash counts should be made by cashier department supervisors. 3. The duties of receiving and recording cash should be assigned to different individuals. 4. Cash register tapes should be used for over-the-counter receipts. 5. All checks should be prenumbered. 6. The duties of approving an item for payment and paying the item should be performed by different individuals. 7. Each check should be compared with approved invoices before being issued. 8. Blank checks should be stored in a safe, and access should be restricted. 9. All personnel who handle cash should be bonded. 10. Only the treasurer should be authorized to sign checks.
INTERNAL CONTROL OVER CASH RECEIPTS AND DISBURSEMENTS Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are: Internal Control Principle Establishment of responsibility Segregation of duties Documentation procedures Physical, mechanical, and electronic controls Independent internal verification Other controls Code Instructions: Match the above principles to the following applications related to cash receipts and cash disbursements by placing the code in the space provided. Each code letter can be used once, more than once, or not at all. 1. Cash receipts should be deposited in bank in total daily. 2. Daily cash counts should be made by cashier department supervisors. 3. The duties of receiving and recording cash should be assigned to different individuals. 4. Cash register tapes should be used for over-the-counter receipts. 5. All checks should be prenumbered. 6. The duties of approving an item for payment and paying the item should be performed by different individuals. 7. Each check should be compared with approved invoices before being issued. 8. Blank checks should be stored in a safe, and access should be restricted. 9. All personnel who handle cash should be bonded. 10. Only the treasurer should be authorized to sign checks.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:INTERNAL CONTROL OVER CASH RECEIPTS AND DISBURSEMENTS
Six internal control principles related to cash transactions are discussed in the textbook. These
principles, with code letters, are:
Internal Control Principle
Establishment of responsibility
Segregation of duties
Documentation procedures
Physical, mechanical, and electronic controls
Independent internal verification
Other controls
Code
Instructions: Match the above principles to the following applications related to cash receipts
and cash disbursements by placing the code in the space provided. Each code letter can be used
once, more than once, or not at all.
1. Cash receipts should be deposited in bank in total daily.
2. Daily cash counts should be made by cashier department supervisors.
3. The duties of receiving and recording cash should be assigned to different individuals.
4. Cash register tapes should be used for over-the-counter receipts.
5. All checks should be prenumbered.
6. The duties of approving an item for payment and paying the item should be performed
by different individuals.
7. Each check should be compared with approved invoices before being issued.
8. Blank checks should be stored in a safe, and access should be restricted.
9. All personnel who handle cash should be bonded.
10. Only the treasurer should be authorized to sign checks.
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