Cash

• cash in hand


  physical cash kept by the business inside a cash register or safe
• cash at bank


  cash deposited with the bank
• Dishonoured cheque

  Expired cheque

  The payer's bank account is closed/frozen, have an insufficient amount of money
• Internal controls

  - safeguard asset of the business

  - ensure business transactions are recorded accurately

  - comply with laws and regulations
• (internal controls) segregation of duties

  separate cash handling and cash recording duties among different employees so that no single person has control over entire cash process
• (internal control) custody of cash

  secure cash and cheque in locked storage:

  - limit access of cash to authorized personnel

  - provide combinations, passwords or other access codes to authorised personnel only
• (internal control) authorisation


  obtain proper approvals for all payments from authorised personnel:

  - require at least two persons to review and approve all pauments

  - requiren valid supporting documents
• (internal controls) Bank reconciliation


  compare the business records with bank records to identify items that caused the differences between ending balances in the business cash at bank account and bank statement