OUR OBJECTIVES To be able to explain and determine the internal control measures on. ‡ Cash and bank balances ‡ Wages and salaries ‡ Purchases and creditors ‡ Sales and debtors ‡ Stocks ‡ Fixed assets ‡ Investments .

‡ All cash receipts should be reconciled with sales records. ‡ All cash received should be banked and safe keeping of cash must also be ensured.Cash and Bank Balances ‡ Proper segregation of duties as between cashiers. schedule officers and accountants ‡ Separation of custodial of cash from the recorder and issuer of receipts. ‡ Cheques should be properly controlled. ‡ There should be periodic reconciliation between the cash book and the bank statements. ‡ Petty cash .

‡ Separations of jobs in preparing wages and salaries. . ‡ Rules and regulation as how wages and salaries are calculated and should be checked.Wages and Salaries ‡ All appointments. ‡ Surprise checking of wages and salaries sheet. Dismissal or revision of wages rates and salaries should be in writing and authorized by a designated official. ‡ Advance wages and salaries register must be maintained.

. ‡ Documents showing the receipts and acceptance of goods should be sent to accounts department. ‡ Purchases return.Purchases and Creditors ‡ Laid down procedures for purchase requisition ‡ Purchases have been done in accordance with procurement Act where tenders are involved. ‡ Procedures for controlling the issue of letters of credit. ‡ Check that necessary review and follow-up has been made with regards to outstanding purchase orders. ‡ Guidelines for inspecting of goods received.

‡ Separation of duties. ‡ Methods of writing off bad debts.Sales and Debtors ‡ The policies and procedure for accepting customers orders should be laid down. ‡ Periodic review of overdue accounts. ‡ Control procedures should be designed for inspecting the quality of the goods before dispatch. . ‡ Sales return.

. ‡ Proper storage facilities and good safety measure. ‡ Periodic Verification of stock.Stock ‡ Checks of all the overall receipts. ‡ Stock valuations. storage and issue of stock. ‡ Determine the maximum and minimum levels.

‡ Physical verification. ‡ Proper method of depreciation and disposal must be stated. ‡ All payment for fixed asset be must be authorized by top management.Fixed Assets ‡ Budget for capital expenditure. . ‡ Maintained fixed asset register.

‡ Valuations of investments should be done according to recognized accounting principles and relevant statutory requirements. .Investments ‡ Decision of investment must be sanction by top management. ‡ Persons authorized to purchase and sell investments should be specified.


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