Question

Make a list of some procedures that should be followed in a business to ensure there is good internal control over cash.

Answer 1

	Procedures that should be followed in a business to ensure good internal control over cash are:
1	Separation of duties - that is there should be different authorized persons for holding custody of cash and for maintaining cash ledgers
2	Daily cash collections should be handed over authorized authority
3	Cash collection should be submitted in to bank on Daily, weekly or monthly basis.
4	Reconciliations should be always up to date, to ensure correctness of accounts maintained
5	Cash should be kept in safe custody and keys are available only with the head cashier
6	CCTV's should be installed in cash room
7	Cash room should be always locked in the absence of head cashier
8	Cash registers, petty cash records and other related documents should be updated up to date.