Activity 3 - audit of cash

Match each of the following objectives to the relevant control activities.

Objectives that controls are trying to achieve:
a. Payments received are deposited intact on a timely basis
b. Payments received are completely credited to the correct customer accounts
c. Overdue accounts are followed up

Control Activities:
1. A list of incoming receipts is prepared by the person who opens the remittances and who
delivers the list to a person independent of the deposit function.
A. Payments received are deposited intact on a timely basis
2. An authorized individual makes regular collection calls on past due accounts.
C. Overdue accounts are followed up
3. Online entry that includes the input of a control total and/or hash total is used for each
payment
B. Payments received are completely credited to the correct customer accounts
4. A duplicate deposit slip is prepared by someone other than the person opening the mail
B. Payments received are completely credited to the correct customer accounts
5. The company systematically sends past-due notices to delinquent customers
C. Overdue accounts are followed up
6. Deposits are made daily
A. Payments received are deposited intact on a timely basis
7. Prenumbered batch control tickets include control totals of the number of remittances to
be processed and total amounts to be applied
B. Payments received are completely credited to the correct customer accounts
8. Past due accounts are periodically reviewed by senior collection officials to determine
alternative collection procedures
C. Overdue accounts are followed up
9. An agreement exists between the bank and the company on cash-handling activities,
including when the remittances are added to the company´s account
A. Payments received are deposited intact on a timely basis
10. Management monitors controls to follow-up on discrepancies in accounts receivable
postings
B. Payments received are completely credited to the correct customer accounts