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HARBAR BUSINESS AND LEADERSHIP COLLEGE
COLLEGE OF BUSINESS AND ECONOMICS
ASSESSMENT OF INTERNAL CONTROL OVER CASH IN THE CASE OF ETHIO-
TELECOM NEKEMTE BRANCH
A RESEARCH PAPER SUBMITTED TO DEPARTMENT OF ACCOUNTING AND
FINANCE IN PARTIAL FULFILMENT OF B.A DEGREE IN ACCOUNTING AND
FINANCE
BY: ID NO
1.Tayech Habte 030/17
2.Dame Fekedu 007/17
3.Ijigayo Mulata 022/17
4.Tigist Dugasa 035/17
5.Lalise Teka 024/17
Advisor : INJIGU L.(MSC)
AUGUST, 2020
NEKEMTE, ETHIOPIA

DECLARATION
This is to declare that this assessment of internal control over cash in the case of Ethio-Telecom
Nekemte Branch.
Accepted in Partial Fulfillment of the requirements for the award BA degree in accounting and
finance was our original work done under supervision of our Advisor Injigu L.(MSC).
GROUP MEMBERS SIGNATURE
1. Tayech Habte ____________
2. Dame Fekedu ____________
3. Ijigayo Mulata ___________
4. Tigist Dugasa ___________
5. Lalise Teka __________
i

Form of Approval
This is to certify that this research paper on “assessment of internal control over cash in the case
of Ethio-Telecom Nekemte Branch has been under my supervision and now I assure as the
researchers can continue their study.
Under supervision of Signature Date
Injigu L _______________ ____________
ii

ACKNOWLEDGMENT
This study would have been a dream without support of God, the almighty and some individuals
who we would like to mention.
First of all, we thank God for giving our stamina and tolerance all through the way. We are
especially indebted to my adviser Injigu L. (MSC). For his patience and dedication in providing
his continuous, valuable and constructive comments throughout the preceding of this study.
We would also like to extend our heartfelt appreciation to all Ethio.telecom employs for their
full-fledged assistance and cooperation in distributing, answering and collecting the
questionnaires and providing the necessary materials for this study.
Table of Contents
iii

DECLARATION .............................................................................................................................. i
Form of Approval ............................................................................................................................ ii
ACKNOWLEDGMENT ................................................................................................................ iii
List of tables .................................................................................................................................... vi
Abstract .......................................................................................................................................... vii
Acronomy ..................................................................................................................................... viii
Chapter one ...................................................................................................................................... 1
Introduction ...................................................................................................................................... 1
1.1. Background of the study ................................................................................................... 1
1.2. Statement of the problem ...................................................................................................... 1
1.3. Research question ............................................................................................................. 2
1.4. Objective of the study ....................................................................................................... 2
1.4.1. General objective ....................................................................................................... 2
1.4.2. Specific objectives ......................................................................................................... 2
1.5. Significances of the study ................................................................................................. 2
1.6. Scope of the Study ................................................................................................................ 3
1.7. Limitations of the study ........................................................................................................ 3
1.8. Organization of the Study ................................................................................................. 3
CHAPTER TWO ............................................................................................................................. 4
RELATED LITERATURE REVIEW .............................................................................................. 4
2. Thererotical Review ................................................................................................................. 4
2.1. Definition of cash ............................................................................................................. 4
2.2. Characteristics of cash .......................................................................................................... 4
2.3. Management of cash
2.3. Management of cash ............................................................................................................. 4
2.4.
2.4.
INTERNAL CONTROL OF CASH
INTERNAL CONTROL OF CASH ..................................................................................... 5
2.4.1. Control of Cash Through Bank Accounts 2.4.1. Control of Cash Through Bank Accounts ...................................................................... 5
2.4.2. Petty Cash Fund 2.4.2. Petty Cash Fund ............................................................................................................. 6
2.4.2.1. Establishment of Petty Cash
2.4.2.1. Establishment of Petty Cash ....................................................................................... 6
2.4.2.2. Replenishment of Petty Cash 2.4.2.2. Replenishment of Petty Cash ...................................................................................... 6
2.4.3. Voucher System 2.4.3. Voucher System ............................................................................................................. 6
2.4.4. Change Fund .................................................................................................................. 7
2.4.5. Cash Short and Over
2.4.5. Cash Short and Over ...................................................................................................... 7
2.5. The Cash Reserve Fund management ................................................................................... 7
2.5.1. GAAP rules for the Cash Reserve Fund ........................................................................ 8
iv

CHAPTER THREE ....................................................................................................................... 11
3. RESEARCH METHODOLOGY .............................................................................................. 11
3.1 INTRODUCTION ............................................................................................................... 11
3.2 Research design ................................................................................................................... 11
3.3 Study population .................................................................................................................. 11
3.5 Data collection instrument ................................................................................................... 11
3.6 Methods of data analysis ...................................................................................................... 11
CHAPTER FOUR ......................................................................................................................... 12
4. DATA ANALYSIS AND PRESENTATION .............................................................................. 12
4.1. Data Analysis Based On Questionnaire (employees) .................................................... 12