Question

LR Cortez is concerned about the control over cash receipts in his fast food restaurant, Big Cheese. The restaurant has two cash registers. At no time do more than two employees take customer orders and ring up sales. Work shifts for employees range from 4 to 8 hours. Cortez asks your help in installing a good system of internal control over cash receipts.

Please write a paragraph of recommendations.

Answer 1

One of the most important steps your unit can take to protect cash is to seperate cash handling duties among different people.With proper seperation of duties,no single person has control over entire cash process.

Reconcile cash receipts and deposits and the general ledger.

It would be better to discuss about Who has acess to cash,Where cash is at all times,When cash to be deposited in bank.

There should be proper internal controls regarding cash receipts.

1. Ensure that there is proper billing system.

2.Allot duty to collect cash for only one person.

3.Perodically deposit cash in bank.

4.Regulary reconcile cash with sales.