Cash and Internal Cash Control

Protection from theft and fraud

An affordable price

A manual system as backup

Printed financial statements

Overstating expenses in financial reports

Underreporting income on tax returns

Stealing company inventory

Falsifying loan applications

Stealing office supplies

Falsifying time reports

Overstating sales in financial statements

Using company vehicles for personal errands

A bookkeeper diverting funds from bill payments to a personal account

A shipping clerk shipping merchandise to himself

A CEO investing company funds into new technology

A computer operator embezzling money from a bank

Encourage Honesty, Reduce Opportunities, Counteract Incentives

Encourage Honesty, Increase Opportunities, Counteract Incentives

Encourage Dishonesty, Reduce Opportunities, Counteract Incentives

Encourage Honesty, Reduce Opportunities, Increase Incentives

Control Environment

Risk Assessment

Control Activities

Information and Communication

Monitoring Activities

Errors

All of the available choices

Intentional misuse

Omissions

​risk assessment

​assignment of responsibilities

​dual control

​separation of duties and approvals

Document procedures

Independently verify

Segregation of duties

Safeguard assets

Benefits must exceed the costs

Human error or fraud

Cost of implementation is too high

Lack of employee training

Safeguard personal information

Increase product prices

Limit website access

Enhance customer service

To reduce cash-handling errors

To increase cash transactions

To eliminate cash theft

To simplify cash management

To increase the amount of cash on hand

To ensure compliance with tax regulations

To safeguard assets and ensure the accuracy of financial records

To reduce the need for financial audits

Segregate duties

Assign responsibilities

Document procedures

Restrict access

$6,100

$6,097

$3

$6,103

$75.10

$200.00

$100.50

$50.00

To ensure proper authorization of transactions

To minimize cash payments

To increase cash flow

To reduce transaction costs

Request goods or services

Order goods or services

Receive goods or services

Obtain bill for goods or services

General Ledger Accounting

Accounts Receivable Accounting

Asset Accounting

Accounts Payable Accounting

Consultants

Vendor

Cash Advance

Request goods or services

Make payment

Receive goods

Document transaction

$23.30

$34.50

$11.20

$5.60

Receive goods or services

Prepare a receiving report

Notify the accounting department

Document procedures

To verify the quantity received

To ensure payment is made

To document the transaction

To approve the purchase

Write check or initiate an EFT

Notify the accounting department

Use prenumbered checks

Mark the voucher 'paid'