1st slide:

Objectives:
1. Describe the internal control over the major components of assets of a business enterprise
namely;
a. Cash
b. Financial Investments
c. Receivables: Accounts and Notes are related revenue accounts
d. Inventories and related Cost of Goods sold
e. Property, Plant and Equipment
2. Understand the potential misstatements (due to errors) of the asset accounts and how
weakness in internal control increases the risks of misstatements.

2nd slide:
Internal Control Over Cash Transactions

3rd slide:
Cash - is the amount of actual money a business has at its disposal. It is classified on the balance
sheet as a current asset, meaning it is likely to be used within the next 12 months, and is usually
held in bank accounts. Examples of cash are currency, coins, checking accounts

4th slide:
Finance Department - a finance department is the unit of a business responsible for obtaining
and handling any monies on behalf of the organization.
● Director & Treasurer
● In charge in cash processes
● Short-term and Long-term arrangements

5th slide:
Functions of the Finance and Accounting Department:
1. All cash that should have been received was in fact received, recorded accurately and
deposited promptly.
2. Cash disbursements have been made for authorized purposes only and have been
properly recorded.
 3. Cash balances are maintained at adequate, but not excessive, levels by forecasting
expected cash receipts and payments related to normal operations. The need for
obtaining the loans for investing excess cash is thus made known on a timely basis.

6th slide:
Guidelines for achieving Internal Control Over Cash:
1. Do not permit any one employee to handle a transaction from beginning to end.
2. Separate cash handling from record keeping.
3. Centralize receiving of cash to the extent practical.
4. Record cash receipts on a timely basis.
5. Encourage customers to obtain receipts and observe cash register totals.

7th slide: continuation lang ‘to ng previous slide

Guidelines for achieving Internal Control Over Cash:
6. Deposit cash receipts daily.
7. Make all disbursements by check or electronic fund transfer, with the exception of small
expenditures from petty cash.
8. Have monthly bank reconciliation prepared by employees not responsible for the
issuance of checks or custody of cash. The completed reconciliation should be reviewed
promptly by an appropriate official.
9. Monitor cash receipts and disbursements by comparing recorded amounts to forecasted
amounts and investigating variances from forecasted amounts.