Basic Cash Control: Principles & Practices
Cash is a liquid, portable, and desirable asset. Therefore, a company must have adequate controls to prevent theft or other misuses of cash. These control activities include segregation of duties, proper authorization, adequate documents and records, physical controls, and independent checks on performance. Unit supervisors and managers must ensure that all cash handlers are properly authorized to handle cash. Verifying the validity of statements on an applicant’s employment application provides a confirmation of that person’s honesty and integrity.
Objectives
- maintaining an environment that focuses on ethics and accountability.
- segregation of duties,
- proper authorization,
- Documentation procedures-adequate documents and records,
- physical controls,
- independent internal verification,-checks on performance.
- Establishment of responsibility,
- Human resource controls.