Accounting 207 – Chapter 7 Hand Out – Internal Controls The following control procedures are used in Precision Controls for Cash Transactions: 1. Cashiers are experienced; thus, they are not bonded. All cashiers should be bonded. 2. All over the counter receipts are registered by three clerks who share a cash register with a single cash drawer. Inability to establish responsibility for cash on a specific individual. Establish Responsibility. Should have separate cash drawer or code key for each clerk 3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank. Not adequately protected from theft. Should be stored in a locked cabinet/safe until deposited. 4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total. Not independently counted. Need independent verification.
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This note was uploaded on 12/12/2010 for the course ACCT ACCT207 taught by Professor Dragone during the Fall '10 term at University of Delaware.