CHAPTER 7

Question 1

Control over recording of cash receipts

Answer 1

• Segregation of duties
• Bank reconciliation

Question 2

Segregation of duties

Answer 2

• Receiving & recording functions are kept separate

Question 3

Cash registers

Answer 3

-Check the amount of money in it vs summary
- Record receipts in the BGLA

Question 4

Security & control in cash registers

Answer 4

• Access keys (appropriate members of staff)
• Trained staff and observe their work
• Maximum possible amount of preset information (save cashier time & reduce fraud)
• Analyse periodic information produced by cash register

Question 5

Cash received sheet/Remittance lits

Answer 5

Used to collect receipts ready for recording
(receipt; cash, cheque, card)

Question 6

Miscellaneous receipts

Answer 6

• Sales of N.C.A
• Refunds from supplier
• Sales tax refund from tax authority
• do not appear in receivable ledger