Melissa- Week 4 Checkpoint - Cash Management Matrix

Melissa- Week 4 Checkpoint - Cash Management Matrix - Axia...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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 Assign the responsibility of a task to one person. This way is something in wrong that person is held responsible. Tellers at a bank or credit union work out of their own cash box. Having multiple people working out of the same cash box you would never know who is responsible for missing funds. Segregation of duties The responsibility of related activities are assigned to different people and/or the responsibility of the record keeping of an asset should be assigned to some who does not have custody of that asset. Keeping record keeping separate from physical custody provides a basis for accountability of an access by not allowing the record Tellers in a bank or credit union have custody of cash they are responsible for giving cash to customers (withdrawals) and taking money from customers (deposits, loan payments, etc.). The accounting department is responsible for compiling the figures from the tellers daily activity and posting them to the general ledger, but do not have ACC 220
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
keeper (accountant) to have custody of an asset or access to it. access to actual cash. Another example would be a company’s bank account. Yes the accounting department may have the responsibility of recording the cash transactions on a daily basis but does not have access to checks and are not signers on the bank account. One person posts payments of invoices other authorized expenses, another person is responsible for issuing the checks, and one to three other people are responsible for signing the checks. In this process you have three people assigned related duties to the handling of the bank account. The clerk responsible for posting authorized payments who does not have access to the checks or is a signer on the bank account, the clerk responsible for issuing the checks has access to the checks but does not have access to the bank account or the authorized payment vouchers, and lastly the ACC 220
Image of page 2
signor(s) on the bank account who have access to only the bank account they are not responsible or do not have the authority to authorize payment vouchers and do not have access to the checks.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern