5.Different forms (colors) should be used for sales tickets for cash, COD and credit sales.6.Cashier should not have any A/R duties--simply prepare bank deposits and take to bank.7.When open mail, prepare 3 copies of prelist. Prelist should not go to credit dept. One copy of the list should go with the checks to the cashier, one used to reconcile the deposit, one should be used for posting to A/R.8.Mail should not be opened by the cashier or a member of the credit dept.
9.The prelist should be reconciled to the deposit slip and the cash sales tickets. Any checks or cash not deposited the day received should be investigated.10.Remittances should not be held--deposited at least daily. Deposit each batch intact.11.Credit should follow up remittances of incorrect amount.12.Independent person agrees list of remittances and daily collections with daily deposit ticket.13.Credit dept. could enter false discounts not taken by customer.14.No record made of mail receipts--no cash prelist.15.All sales tickets should be prenumbered and accounted for daily, stamped paid, reconciled to validated deposit slip provided by the bank. 16.Assistant credit manager could cover up by falsifying A/R, falsifying sub ledger trial balance, sending customers false statements. She should not prepare the remittance list, bank deposit. She should not take the deposit to the bank.
- Fall '15
- Cheque, Fractional-reserve banking, Deposit account, Discounts and allowances, credit manager, assistant credit manager