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    IC On Petty Cash Key

    Uploaded by

    Lorie Roncal
    The document outlines internal controls for petty cash and cash receipts. It lists 21 different internal control procedures, such as using pre-numbered forms, requiring receipts for disbursements, separating cash handling duties, and conducting surprise audits. The controls are intended to safeguard cash, provide documentation of transactions, and deter and detect fraudulent activities like theft or lapping.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    IC On Petty Cash Key

    Uploaded by

    Lorie Roncal
    65 views2 pages
    The document outlines internal controls for petty cash and cash receipts. It lists 21 different internal control procedures, such as using pre-numbered forms, requiring receipts for disbursements, separating cash handling duties, and conducting surprise audits. The controls are intended to safeguard cash, provide documentation of transactions, and deter and detect fraudulent activities like theft or lapping.

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    IC on Petty Cash Key

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    The document outlines internal controls for petty cash and cash receipts. It lists 21 different internal control procedures, such as using pre-numbered forms, requiring receipts for disbursements, separating cash handling duties, and conducting surprise audits. The controls are intended to safeguard cash, provide documentation of transactions, and deter and detect fraudulent activities like theft or lapping.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    65 views2 pages

    IC On Petty Cash Key

    Uploaded by

    Lorie Roncal
    The document outlines internal controls for petty cash and cash receipts. It lists 21 different internal control procedures, such as using pre-numbered forms, requiring receipts for disbursements, separating cash handling duties, and conducting surprise audits. The controls are intended to safeguard cash, provide documentation of transactions, and deter and detect fraudulent activities like theft or lapping.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 2

    AUDITING & ASSURANCE PRINCIPLES For recitation

    and discussion
    INTERNAL CONTROL ON PETTY CASH No. 1 is given as an Example

    INTERNAL CONTROL No. STATE at least ONE REASON - WHY

    General policies
    The imprest fund method should be used 1. (1) To limit the amount of cash in the fund
    (2) Easy to check

    The amount of the fund should be resricted to 2. To prevent excessive amount of fund
    a minimum amount for reimbursement at relative short For periodic check on disbursements from the fund
    period of time

    Maximun figures for individual payments against 3. To ensure that only petty disbursements are made
    the fund must be set as a policy out of the fund

    Custodian of the fund


    Responsibility of the fund should be vested in 4. So that the blame for irregularities cannot be
    one person passed on to other parties

    The custodian of the fund should not have access 5. To prevent substitution to cover up cash
    to cash receipts shortage

    The custodian of the fund should not have access 6. Accounting records may be altered to cover
    to general accounting records irregularities

    Petty cash vouchers


    Petty cash vouchers should be required for each 7. To provide evidence supporting disbursements
    fund disbursement To dischare custodian of his responsibility

    Vouchers should be executed in ink (or type- 8. To make alterations or changes difficult
    written) and the figures spelled out in words

    Vouchers should be approved by a responsible 9. To control expenditures


    official before payment

    Vouchers and supporting documents should be 10. To ensure that disbursements are proper
    checked at the time of replenishment by a
    responsible official

    Reimbursement/replenishment 11. To fix responsibilty for proceeds of the reimb check


    Checks for reimbursement/replenishment To discourage presentation of fictitous vouchers
    should be made out of to the order of the PCC for reimbursement

    Upon reimbursement/replenishment, PCVs and 12. To prevent fraudulent re-submission of petty


    supporting documents should be marked or cash vouchers
    cancelled (paid)

    Other control measures on petty cash


    Cashing of personal checks from the fund should 13. This practice could be use to cover irregularities
    be prohibited

    Advances out of the fund should be discouraged 14. This practice could be use to cover irregularities
    or prohibited

    Surprise counts ahould be conducted from time 15. To serve as deterrent against irregularities
    to time by an internal auditor or other responsible
    official

    Cash receipts:
    Cash receipts received in person
    Cash sales should be supported with invoices 16. To serve as proof of cash collections

    Cash sales proofs should be compared with the 17. To ascertain that all cash received were actually
    detail of the bank deposit slips by a person who deposited
    does not receive or deposit the cash

    Official receipts, sales invoices and other forms 18. Serial numbering serves as deterrent against
    should be serially numbered by the printer and irregularitie
    kept in safe custody

    Unused forms should be checked regularly and 19. Unused forms may be lost and presented to
    all accounted for aid lapping activities although there is no actual
    collections
    Cancelled receipts should be checked regularly 20. Cancelled receipts can be re-used for
    including the original copies of those cancelled lapping activities

    The numerical sequence of forms should be 21. The numerical sequence of the OR served as
    checked independently by the accounting deterrent against irregularity
    department Provides aid in auditing

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