Internal Control over Cash d.
use of cash vaults
Potential Risks related to Cash.
Some of the common risks related to Cash.
 Cash may be stolen or missing,
 Cash transactions may not be recorded.
 Cash transactions are inaccurately
recorded.
Safeguarding Cash: How to avoid mishandling
of cash/stolen.
 OPENING A BANK ACCOUNT – by
opening a bank account, a new record is
made by the bank to monitor your cash
in their safekeeping. The bank keeps
track of your cash transactions in the
same way that you monitor it from your
end.
 In this way, you get to compare your
own records and identify any
discrepancies. As a way of comparing or
checking, companies do the BANK
RECONCILIATION.
- Bank reconciliation – is prepared to
explain the difference between the
cash balances per records (book) and
the cash balance per bank statement.
Bank reconciliation are cause normally by
timing difference and errors.
Differences are normally caused by items
already taken up by one party but not yet
taken up by the other (timing differences)
and error committed by either party.
 CONTROLS OVER CASH RECEIPTS
a. use of POS terminal and cash drawer
b. issuance of electronic receipts for cash
sales transactions
example: POS terminal and cash drawer
c. end of day (EOD) deposit and review of
deposit slips
example: setting a time cutoff and
depositing the sales during the day.
 CONTROLS OVER CASH
DISBURSEMENTS/PAYMENTS
a. Use of check
- sa accounting department. Para
masimplify yung payment at maiwasan
yung errors pag nagbibilang physically
ng pera + hindi na kailangan mag
withdraw ng pera.
b. Authorization matrix
- may ari ng kumpanya or depende kung
gaano kalaki yung company (signatory
sa check). Bank will verify kung same ba
yung signature sa check saka sa system
nila.
c. Use of voucher system
- Accounting Department (Accounts
Payable Voucher, Check Voucher)
d. 2-way / 3-way matching
- 2-way matching yunug purchase order
yung internal document na ginawa ng
company ico-compare sa sales invoice
ng supplier. Pag 3 way matching kasama
yung delivery receipt or receiving
report.
Voucher System
Accounting Department – payment processing
part
 USE OF PETTY CASH FUND FOR SMALL
VALUE CASH PURCHASES
- For small value expenses