Cash control

Aug 26th, 2016
Studypool Tutor
Ashford University
Price: $5 USD

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You are a business consultant providing information and advice to future small business owners. Controls are especially important with respect to cash. Three of them are clear assignment of responsibility, specific procedures for documentation, and independent internal verification of the data. Create a PowerPoint presentation for a seminar aimed at future business owners who will be dealing with large amounts of cash. Explain the importance of the three areas of cash control and make recommendations for procedures that could be implemented

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Cash controlAreas of cash controlAssigning responsibilitySpecific procedures for documentationIndependent internal verification of the data.These three areas should be mutually exclusive of each other andperformed by different individuals.a) Assignment of responsibilitySeparation of duties involving the collection and handling ofcash is important to maintain accountability within abusiness. The should be clear assignment of;Who carries the cashWho keeps the cashWhere the cash is keptWho has access to the cashDual controls, where two or more employees are charged withhandling each step of the process may reduce the chances offraud.b) Specific procedures fordocumentationProper documentation of cash received is paramount to therunning of the business. Measures should be put in place to ensureall money received is recorded and accounted for.Cash receipts For all monies received. (cheques, credit cards,cash)Cash deposits to banks and other financial institutionsc) Independent internal verification ofthe dataThis entails personnel not affiliated to the accounts departmentperforming an analysis and audit of the accounts for verification.Standard operating procedures should be adhered to duringverification.It involves;ObservationAnalysisReviewVerificationA recommendation in verification is direct interviewing ofpersonnel in the accounting department which

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