All monies received are recorded

Question 1

What is risk

Answer 1

That monies are received but not recorded

Question 2

What is control objectives

Answer 2

All monies received are recorded

Question 3

What is controls (segragation)

Answer 3

Should be a segragation of duties between those who receive monies and those recording them on accounting system

Question 4

What is controls (two people)

Answer 4

Two people should open the post and record the amounts received on a receipts listing

Question 5

What is controls (information)

Answer 5

This information passed to another member of staff who then record the entires in cash book and write out the bank paying in slip

Question 6

What is controls (banking)

Answer 6

Another member of staff should be responsible for banking any monies received

Question 7

What is tests of controls (process)

Answer 7

Observe process of post being opened and monies received recorded to ensure entity’s internal controls are being adhered to

Question 8

What is tests of controls (documentation)

Answer 8

Inspect documentation such as the bank paying in slip for evidence of each staff member carrying out each separate part of the process