Cash Controls - critical. Cash Receipts Controls...

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Cash Controls Cash is the one asset that is readily convertible into any other type of asset. It also is easily concealed and transported, and is highly desired. Because of these characteristics , cash is the asset most susceptible to fraudulent activities . In addition, because of the large volume of cash transactions, numerous errors may occur in executing and recording them. To safeguard cash and to ensure the accuracy of the accounting records for cash, effective internal control over cash is
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Unformatted text preview: critical. Cash Receipts Controls Illustration 7-4 shows how the internal control principles explained earlier apply to cash receipts transactions. As you might expect, companies vary considerably in how they apply these principles. To illustrate internal control over cash receipts, we will examine control activities for a retail store with both over-the-counter and mail receipts. Application of internal control principles to cash receipts...
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Cash Controls - critical. Cash Receipts Controls...

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