Problem: Design appropriate internal controls for:
o Cash (THIS ONE)
o Sales (THIS ONE)
What internal controls that you would propose over these different processes
Some of these might be physical controls
some might have to do with approvals
some might have to do with reconciliation
some of these might have to do with segregation of duties
What are the controls that you would propose for cash
- counting the money in the drawer before and after the shift...maybe someone signs off on it
- reconciling the bank account on a monthly basis...maybe its approved by someone
- who signs checks when you have to buy stuff....do two people have to sign if it is over a certain amount...if so...what is the amount?
- who approves people taking money out of petty cash