H.

3 Internal Control Procedures

H.3.1 Cash Handling
Cash Receipt

The cashier receives the cash and prepares cash receipt journal.

The cashier remits the payment to the general manager

The GM checks the accuracy and completeness of the checks and

the cash receipts journal. Reconciles them with the sales invoice.

GM keeps the cash in a safe box.

GM deposits the cash every week.

Accountant reconciles the deposit slip with the cash receipts

journal and sales invoices.

Accountant should perform surprise cash counts.

Cash Disbursement

Cashier issues a check upon reception of the receiving report.

GM authorizes the payment by signing the check.

H.3.2 Handling of Accounts Receivables

To avoid problems in collecting the accounts receivable the CM

must checks the credibility of the customer.

H.3.3 Handling of Accounts Payables


H.3.4 Handling of Inventory
H.3.4.1 Raw Materials Inventory

Warehouse personnel has the custody of the raw materials

inventory.

PM has the records of RM inventory and updates it whenever there

is a receipt of RM.

PM monitors the inventory levels of RM.

H.3.4.2 Finished Goods Inventory

PM monitors the production of Hollow blocks.

PM counts the HB made during the day and updates the inventory
records for finished goods.

H. 3.5 Handling of Retained Funds