Supervisor –Read register data
and Compare
6-15
Control of Cash Receipts
Cash Over and Short 现金溢缺

the cash in a cash register might not equal the record of cash receipts
②Байду номын сангаас
6-18
P4
Voucher System of Control
Sender/签发
Cashier Accounting Receiving
Check Invoice Approval Receiving Report Invoice Purchase Order
Receiver/接受
Supplier (Vendor) Cashier Accounting, Requesting & Purchasing Accounting Supplier, Requesting, Receiving & Accounting Purchasing and Accounting
Financial and Managerial Accounting
John J. Wild Third Edition
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
6-6
C1
Principles of Internal Control
1. 2. 3. 4.
Establish responsibilities.
Maintain adequate records.
Insure assets and bond key employees. Separate recordkeeping from custody of assets. Divide responsibility for related transactions. Apply technological controls.


Cash register’s record shows $550, but the count of cash in the register is $555 – Dr: Cash 555 Cr: Cash Over and Short 5 Sales 550 How about the normal balance?
Plan expenditures –seasonal and business cycles Invest excess cash

Excess from seasonal cycles: short-term investments Excess beyond regular needs: invest in productive assets

Control of Cash Disbursements

Bank Statement and Bank Reconciliation
比较数据：短期趋势
C1
Control of Cash
An effective system of internal control that protects cash and cash equivalents should meet three basic guidelines:

Control of Cash Receipts


Over-the-Counter Cash Receipts Cash Receipts by Mail / EFT Voucher System of Control —凭单制度 Petty Cash System of Control —零星现金
5. 6.
7.
Perform regular and independent reviews.
6-7
C1
Control of Cash
Cash & Cash Equivalents: Definition & Types Cash Management: Goals and Principles
Chapter 8
Cash and Internal Controls
Conceptual Learning Objectives
C1: Define cash and cash equivalents and explain how to report them. C2: Identify control features of banking activities.
1. 2. 3. 4. 5.
Evaluation of internal controls. Auditor’s work is overseen by the Public Company Accounting Oversight Board (PCAOB). Restriction on consulting services performed by auditors. Term limits on person leading the audit. Harsh penalties for violators, including prison time with severe fines.
c)

Separate authorization for check signing and recordkeeping duties.
Use a voucher system（凭单制）
6-17
P4
Voucher System of Control 凭单制
A voucher system establishes procedures for:
General & Administrative Expenses; Miscellaneous expenses
P1
Control of Cash Disbursements
a)
All expenditures should be made by check. petty cash.
b) Only exception is for small payments from
Inventory
Cash
6-12
C2
Cash Management Principles
When companies fail, one of the most common causes is their inability to manage cash. Goals of cash management are twofold:
Supplier (Vendor) Purchasing Requesting
Purchase Requisition
①
Verifying, approving and recording obligations for eventual cash disbursements. Issuing checks for payment of verified, approved and recorded obligations.
6-3
Procedural Learning Objectives
P1: Apply internal control to cash receipts and disbursements.
P2: Explain and record petty cash fund transactions. P3: Prepare a bank reconciliation.
2. Items acceptable for deposit, e.g. customer checks, cashier checks , money orders, and certified checks.
Cash Equivalents
Short-term, highly liquid investments that are: 1. Readily convertible to a known cash amount 2. Close to maturity date and not sensitive to interest rate changes.
Encourage collection of receivables -discount
Delay payment of liabilities

Last possible day to pay, but not hurt credit standing


Keep only necessary levels of cash


Plan cash receipts to meet cash payments when due. 现金收款 V. 现金付款 Keep the minimum level of cash necessary to operate.
6-13
Cash Management Principles

P1
Control of Cash Receipts
Goal: Cash received is properly recorded and deposited. Over-the-Counter Cash Receipts

Clerks – Record the amount,
Count 盘点 the cash
6-5
C1
The Sarbanes-Oxley Act