Cash Receipts Handling Process

Question 1

What are the 5 stages

Answer 1

Recording of receipts recieved by post

Recording of sales and cash collections

General controls over recording

Banking

Safeguarding of cash and bank accounts

Question 3

Recording of receipts reciepts by post

Answer 3

Safeguards to prevent interception of mail between receipt and opening

Responsible person to supervise post

Cheques should be crossed

Amounts recieved listed on opening post

Question 4

Recording of sales and cash collections

Answer 4

Restrictions on receipt of cash e.g cashiers only

Evidence of receipt of cash e.g cash registers with sealed till rolls

Emptying of cash offices and registers

Agreement of cash collections with till rolls Emptying

Investigate cash shortages/ surpluses

Question 5

General controls over recording

Answer 5

Prompt maintenance of records e.g cash book

Receipt books should be secure

Receipts should be compared to cash records and bank paying in slips

Limit duties of receiving cashiers

Cover in place when person who records cash is on holiday

Paperwork is adequate e.g receipts retained, serially numbered receipts given

Question 6

Banking

Answer 6

Daily banking

Paying in slips should agree and cross reference to initial receipt records and cash book

Bankings should be of complete receipts, payments could be deducted from cash receipts

Question 7

Safeguarding of cash and bank

Answer 7

Restrictions on opening new bank accounts

Limited cash floats

Restrictions on making cash payments from cash receipts

Restrictions on access to cash registers and offices

Independent checks on cash floats

Surprise cash counts

Custody of cash outside office hours

Adequate insurance

Restrictions over preparation of cheques