Internal controls assure achievement of an organization’s objectives in
operational effectiveness and efficiency, reliable financial reporting, and
compliance with laws, regulations, and policies. According to the Committee of
Sponsoring Organizations of the Treadway Commission (COSO), internal
control has five components: the control environment, risk assessment,
information and communication, control activities, and monitoring processes.
Businesses will generally be required to perform an audit at least once a year
on all of its financial reports and internal controls, including those controls
associated with cash.
Three common types of internal controls for cash include bank reconciliations,
voucher systems, and electronic funds transfers (EFT).
North Paddy Bhd
Bank Reconciliation Statement
As at 31
Balance per bank statement
Add: Deposit in transit
Bank error: Vivo Enterprise
Deduct: Outstanding cheque
Correct Cash Balance
Balance per books