CASH内部控制和现金管理

INTERNAL CONTROL AND CASH 内部控制和现金内部控制和现金 Define internal control.Principles of internal control.Internal control to cash receipts.Internal control to cash disbursements.Operation of a petty cash fund.Control features of a bank account.Prepare a bank reconciliation.Main PointsInternal control consists of the plan of organization and all the related methods and measures adopted within a business in order to:1 safeguard its assets and2 enhance the accuracy and reliability of its accounting records.INTERNAL CONTROL 内部控制内部控制1.Establishment of responsibility 责任的建立责任的建立:control is most effective when only one person is responsible for a given task.2.Segregation of duties职责的分离职责的分离:the work of one employee should provide a reliable basis for evaluating the work of another employee.3.Documentation procedures过程证据化过程证据化:documents should provide evidence that transactions and events have occurred.PRINCIPLES OF INTERNAL CONTROLu Physical,mechanical,and electronic controls 物理控物理控制制:relate primarily to the safeguarding of assets and enhancing accuracy and reliability of the accounting records.u Independent internal verification 独立的内部验证独立的内部验证:the review,comparison,and reconciliation of information from two sources.u Other controls其他控制其他控制:bonding of employees who handle cash,rotating轮换轮换 employees duties,and requiring employees to take vacations休假休假.PRINCIPLES OF INTERNAL CONTROLu Safes,and safety deposit boxes for cash and business papers u Locked warehouses and storage cabinets for inventories and recordsu Computer facilities with pass key access PHYSICAL CONTROLS MECHANICAL AND ELECTRONIC CONTROLSu Alarms to prevent break-insu Television monitors to deter theftu Time clocks for recording time workedTo obtain maximum benefit from independent internal verification:1 The verification should be made periodically or on a surprise basis.2 The verification should be done by an employee who is independent of the personnel responsible for the information.3 Exceptions should be reported to a management level that can take appropriate corrective action.INDEPENDENT INTERNAL VERIFICATIONu Independent internal verification is often assigned to internal auditors内部审计师内部审计师.u Internal auditors evaluate the effectiveness of the companys system of internal control on a continuous basis.u Internal auditing is a professional activity within a company,often with direct access to the board of directors.INDEPENDENT INTERNAL VERIFICATIONMakes monthly comparisons:reports any unreconcilable differences to treasurerMaintains cash balances Maintains custody of per books cash on hand Independent Internal VerificationCOMPARISON OF SEGREGATION OF DUTIES PRINCIPLE WITH INDEPENDENT INTERNAL VERIFICATION PRINCIPLEAccounting Employee AAssistant Cashier BAssistant Treasurer CSegregation of Dutiesu Costs of establishing control procedures should not exceed their expected benefits according to the concept of reasonable assurance.u The human element is also an important factor.A good system can become ineffective through employee carelessnessu Collusion合谋合谋 may result when two or more individuals work together to get around prescribed controls and may significantly impair the effectiveness of a system.LIMITATIONS OF INTERNAL CONTROL内部控制的限制内部控制的限制1.Cash includes coins,currency,checks,money orders,and money on hand or on deposit at a bank or similar depository.2.Internal control over cash is imperative in order to safeguard cash and assure the accuracy of the accounting records for cash.CASH现金现金u Only designated personnel should be authorized to handle or have access to cash receipts.u Different individuals should:1 receive cash2 record cash receipt transactions3 have custody of cashINTERNAL CONTROL OVER CASH RECEIPTS 接受现金的内部控制接受现金的内部控制u Documents should include:remittance advices,cash register tapes,deposit slipsu Cash should be stored in safes and bank vaultsu Access to storage areas should be limited to authorized personnelu Daily cash counts and daily comparisons of total receipts.u All personnel who handle cash receipts should be bonded and required to take vacations.u Control of over-the-counter receipts is centered on cash registers that are visible to customers.u Payments are made by check支票支票 rather than by cash,except for petty cash 零用现零用现金金transactions.u Only specified individuals should be authorized to sign checks.u Different departments or individuals should be assigned the duties of approving an item for payment and paying it.INTERNAL CONTROL OVER CASH DISBURSEMENTS现金支付的内部控制现金支付的内部控制u Pre-numbered checks should be used and each check should be supported by an approved invoice or other document.u Blank checks空白支票空白支票 should be stored in a safe.1 Access should be restricted to authorized personnel.2 A check writer machine should be used to imprint the amount on the check in indelible ink.uEach check should be compared with the approved invoice before it is issued.uFollowing payment,the approved invoice should be stamped PAID.Paidu Electronic Funds Transfer(EFT)is a disbursement system that uses wire,telephone,or computer to send cash from one location to another.u Regular payments such as those for house,car,and utilities are frequently made by EFT.ELECTRONIC FUNDS TRANSFER 电子电子资金划账资金划账u A petty cash fund is used to pay relatively small amounts.u Operation of the fund,often called an imprest system,involves:1 establishing the fund,2 making payments from the fund,and3 replenishing the fund.PETTY CASH FUND备用金备用金uAccounting entries are required when:1 the fund is established,2 the fund is replenished,and3 the amount of the fund is changed.PETTY CASH FUND备用金备用金ESTABLISHING THE FUNDu Two essential steps in establishing a petty cash fund are1 appointing a petty cash custodian who will be responsible for the fund and2 determining the size of the fund.u Ordinarily,the amount is expected to cover anticipated disbursements for a 3-week to 4-week period.General Journal Date Account title DRCRMar.1 Petty cash 100 cash 100To establish a petty cashLaird Company decides to establish a$100 fund on March 1.When the fund is established,a check payable to the petty cash custodian is issued for the stipulated amount.REPLENISHING THE FUNDu When the money in the petty cash fund reaches a minimum level,the fund is replenished.u The request for reimbursement is initiated by the petty cash custodian.u The petty cash custodian prepares a schedule of the payments that have been made and sends the schedule,with supporting documentation,to the treasurers office.General Journal Date Account title DRCRMar.15Postage expense 44Freight-in 38Miscellaneous expense5 cash 87To replenish petty cash fund On March 15 the petty cash custodian requests a check for$87.The fund contains$13 cash and petty cash receipts for postage$44,freight-in$38,and miscellaneous expenses,$5.1.The use of a bank minimizes the amount of currency that must be kept on hand and contributes significantly to good internal control over cash.2.A company can safeguard its cash by using a bank as a depository and clearing house for checks received and checks written.3.New depositors are required to sign a signature card when opening a checking account.USE OF A BANKu A check is a written order signed by the depositor directing the bank to pay a specified sum of money to a designated recipient.u Three parties to a check are:1 Maker(drawer)issues the check2 Bank(payer)on which check is drawn3 Payee to whom check is payableWRITING CHECKS 开支票开支票DrawerBankPayee CheckCheck Cash Bank Statement BANK STATEMENTS银行对账单银行对账单A bank statement shows:1 checks paid and other debits charged against the account2 deposits and other credits made to the account3 account balance after each days transactionsBANK STATEMENTS 银行对账单银行对账单A C C O U N TW.A.L A I R D C O MP A N YS t a t e m e n t D a t e/C r e d i tS T A T E ME N T7 7 WE S T C E N T R A L A V E N U EL i n e C l o s i n g D a t eMI D L A N D,MI C H I G A N 4 8 6 5 4A p r i l 3 0,1 9 9 64 5 7 9 2 3A C C O U N T N U MB E RB a l a n c eD e p o s i t s a n d C r e d i t sC h e c k s a n d D e b i t sB a l a n c eL a s t S t a t e me n tN o.T o t a l A m o u n tT o t a l A m o u n tT h i s S t a t e me n t1 3,2 5 6.9 02 03 4,8 0 5.1 02 63 2,1 5 4.5 51 5,9 0 7.4 5D E P OS I T S A N DC H E C K S A N D D E B I T SC R E D I T SD A I L Y B A L A N C ED a t eN o.A mo u n tD a t eA mo u n tD a t eA mo u n t4-24 3 56 4 4.9 54-24,2 7 6.8 54-21 6,8 8 8.8 04-54 3 63,2 6 0.0 04-32,1 3 7.5 04-31 8,2 4 9.6 54-44 3 71,1 8 5.7 94-51,3 5 0.4 74-41 7,0 6 3.8 64-34 3 87 7 6.6 54-79 8 2.4 64-51 5,1 5 4.3 34-84 3 91,7 8 1.7 04-81,3 2 0.2 84-71 4,6 4 8.8 94-74 4 01,4 8 7.9 04-9 C M1,0 3 6.0 04-81 1,7 6 7.4 74-84 4 12,4 2 0.0 04-1 12,7 2 0.0 04-91 2,8 0 2.4 74-1 14 4 21,5 8 5.6 04-1 27 5 7.4 14-1 11 3,9 3 6.8 74-1 24 4 31,2 2 6.0 04-1 31,2 1 8.5 64-1 21 3,4 6 8.2 8=4-2 9N S F4 2 5.6 04-2 71,5 4 5.5 74-2 71 3,0 0 5.4 54-2 94 5 91,0 8 0.3 04-2 92,9 2 9.4 54-2 91 4,4 2 9.0 04-3 0D M3 0.0 04-3 02,1 2 8.6 04-3 01 5,9 0 7.4 54-3 04 6 16 2 0.1 5S y m b o ls:CMCr e d i t Me m oE CE r r o r Co r r e c t i o nNS FNo t S u f f i c i e n t F u n d sRe c o n c i le Y o u rDMDe b i t Me m oINTI n t e r e s t E a r n e dS CS e r v i c e Ch a r g eA c c o u n t P r o m p t lyu Bank debit memoranda indicate charges against the depositors account.Example:ATM service chargesu Bank credit memoranda indicate amounts that will increase the depositors account.Example:interest income on account balanceMEMORANDARECONCILING THE BANK ACCOUNT 银行户头的调整银行户头的调整u Reconciliation is necessary because the balance per bank银行余额银行余额 and balance per books账上余额账上余额 are seldom in agreement due to time lags and errors.u A bank reconciliation should be prepared by an employee who has no other responsibilities pertaining to cash.u Steps in preparing a bank reconciliation:1 Determine deposits in transit2 Determine outstanding checks3 Note any errors discovered4 Trace bank memoranda to the recordsu Each reconciling item used in determining the adjusted cash balance per books should be recorded by the depositorRECONCILING THE BANK ACCOUNTThe bank statement for the Laird Company shows a balance per bank of$15,907.45 on April 30,2002.On this date the balance of cash per books is$11,589.45.BANK RECONCILIATONCash balance per bank statement 15907.45Add:deposit in transit 2201.4Less:outstanding checks No.4533000 No.4571401.3 No.4601502.7Adjusted balance per bank statement12204.85Cash balance per books11589.45Add:collection of notes receivable,interest 1035 error in recording check No.443 36Less:NSF check 425.6 bank service charge 30Adjusted balance per books 12204.85 General Journal Date Account titles DRCRApril 30Cash 1035Miscellaneous expense 15 Notes receivable 1000 Interest revenue 50To record collection Collection of Note Receivable This entry involves four accounts.Interest of$50 has not been accrued and the collection fee is charged to Miscellaneous Expense.General Journal Date Account titles DRCRApril 30Cash 36 Accounts payable 36To correct error in recording check No.443Book Error An examination of the cash disbursements journal shows that check No.443 was a payment on account to Andrea Company,a supplier.The check,with a correct amount of$1,226,was recorded at$1,262.General Journal Date Account titles DRCRApril 30Accounts receivable 425.6 Cash 425.6To record NSF check NSF Check An NSF check becomes an accounts receivable to the depositor.General Journal Date Account titles DRCRApril 30Miscellaneous expense 30 Cash 30To record charge for a printing checks Bank Service Charges Check printing charges(DM)and other bank service charges(SC)are debited to Miscellaneous Expense because they are usually nominal in amount.u Cash reported on the Balance Sheet includes:1 Cash on Hand2 Cash in banks3 Petty Cashu Cash is listed first in the balance sheet under the title cash and cash equivalents现金等价物现金等价物 because it is the most liquid asset.REPORTING CASH1.Cash equivalents are highly liquid investments with maturities of 3 months or less when purchased that can be converted into a specific amount of cash.2.Examples include money market funds货币市场基金会货币市场基金会,bank certificates of deposit银行存款单银行存款单,and U.S.Treasury bills and notes国库券国库券.CASH EQUIVALENTS