You have completed your audit of Tinga Tinga Ltd. You have issued a management letter to the Chief Accountant which identifies weaknesses in the controls over sales. Cash is received over the counter, from salesmen and also through the post. Tinga Tinga Ltd‘s Chief Accountant has asked you for recommendations as to the type of controls you would wish to see in operation in a sales system. Required: Outline the controls you would expect to find in Tinga Tinga Ltd‘s sales system with regard to: Cash collected by salesman

Cash collected by sales men

  • A daily cash collected report should be prepared by each sales man showing the total cash received from each customer;
  •  The cash collection report should also show the expected cash collection basing on the stock sold and the actual amount. Any variances should be explained;
  •  The marketing manager should also review the cash reports on a daily basis to ensure that all the stock issued for sale has been accounted for;
  •  All the cash and cheques collected should be surrendered to the cashier on a daily basis. This should be kept in a safe and banked regularly;
  • Debtors‘ statements should be sent to the customers on a monthly basis

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