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: Banking of cash received

  •  Banking of cash received
  • Cash received should be kept in a safe awaiting banking;
  • It might be necessary to engage a security company when transporting the cash to the bank;
  •  Banking should be done by a person independent of the cashiering function;
  •  The banking hours should be rotated to reduce the security risk;
  • Cash deposit slips should be prepared for all the cash banked and the amounts recorded in the cashbook.

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