internal contorl

• why do we need internal control systems?

  assets need to be protected against loss or damage

  • assets must be employed as efficiently as possible
• main principles adopted in controlling any asset?

  Segregation of duties

  establish lines of reponsibility

  appropriate security of assets and records

  install mechanical/electronic devices

  authorisation process

  Employ competent and reliable staff

  Adequate recording and documentation systems
• internal control processes for cash?

  systematic and separate authorisation of payments

  proper documentation of receipts & payments

  regular bank reconciliation

  regular cash budgeting -> future deficits or surpluses can be dealt with