Week 5 DQ2

How would you describe the key internal controls that should be in place to protect cash in a cash rich environment such as a merchandiser?

The controls that should be in place to protect a merchandiser in a cash rich environment are -

Establishment of responsibility

Segregation of duties

Documentation procedures

Physical controls

Independent internal verification

Human resource controls

The establishment of responsibility authorizes who handles the registers. The segregation of duties means that each independent duty associated with the process is separated therefore the same person does not complete to related tasks in a row. One person runs the register, another processes the deposit, another person verifies the deposit, and another reconciles the amounts by comparing...