acc220_appendix_b-1 - Axia College Material Appendix B Cash...

Axia College Material
Appendix B
Cash Management Matrix
Directions : Using the matrix, list how each of the principles of internal control works, and give an example for each. Next, list how each of the
principles of cash management works, and give an example for each.
Principles of Internal Control How it Works Example
Establishment of responsibility Assignment of responsibility to
specific individuals.
If you take your car to Jiffy Lube
and get an oil change but later that
day, you notice that oil is leaking
from your car. You can take it
back to the person that worked on
it because that person was the only
person that worked on your car.
Segregation of duties The work of one employee should
provide a basis for another
employee.
You have two data entry
representative that combined have
a daily quota of 60 orders. One
data entry representative enters 35
orders, while the other data entry
representative enters 25.