CASH 内部控制和现金(ppt 43)英文版

1、INTERNAL CONTROL AND CASH 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 th

2、e 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Establishment of responsibility 责任的建立: control is most effective when only one person

3、is responsible for a given task.Segregation of duties职责的分离: the work of one employee should provide a reliable basis for evaluating the work of another employee.Documentation procedures过程证据化: documents should provide evidence that transactions and events have occurred.PRINCIPLES OF INTERNAL CONTROLP

4、hysical, mechanical, and electronic controls 物理控制: relate primarily to the safeguarding of assets and enhancing accuracy and reliability of the accounting records.Independent internal verification 独立的内部验证: the review, comparison, and reconciliation of information from two sources.Other controls其他控制:

5、 bonding of employees who handle cash, rotating轮换 employees duties, and requiring employees to take vacations休假.PRINCIPLES OF INTERNAL CONTROLSafes, and safety deposit boxes for cash and business papers Locked warehouses and storage cabinets for inventories and recordsComputer facilities with pass k

6、ey access PHYSICAL CONTROLS MECHANICAL AND ELECTRONIC CONTROLSAlarms to prevent break-insTelevision monitors to deter theftTime 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

7、 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 VERIFICATIONIndependent internal verification is often assigned to in

8、ternal auditors内部审计师.Internal auditors evaluate the effectiveness of the companys system of internal control on a continuous basis.Internal auditing is a professional activity within a company, often with direct access to the board of directors.INDEPENDENT INTERNAL VERIFICATIONMakes monthly comparis

9、ons: 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

10、 Treasurer CSegregation of DutiesCosts of establishing control procedures should not exceed their expected benefits according to the concept of reasonable assurance.The human element is also an important factor. A good system can become ineffective through employee carelessnessCollusion合谋 may result

11、 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Cash includes coins, currency, checks, money orders, and money on hand or on deposit at a bank or similar depository.Internal

12、 control over cash is imperative in order to safeguard cash and assure the accuracy of the accounting records for cash.CASH现金Only designated personnel should be authorized to handle or have access to cash receipts.Different individuals should:1 receive cash2 record cash receipt transactions3 have cu

13、stody of cashINTERNAL CONTROL OVER CASH RECEIPTS 接受现金的内部控制 Documents should include: remittance advices, cash register tapes, deposit slips Cash should be stored in safes and bank vaults Access to storage areas should be limited to authorized personnelDaily cash counts and daily comparisons of total

14、 receipts.All personnel who handle cash receipts should be bonded and required to take vacations.Control of over-the-counter receipts is centered on cash registers that are visible to customers.Payments are made by check支票 rather than by cash, except for petty cash 零用现金transactions.Only specified in

15、dividuals should be authorized to sign checks.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 Pre-numbered checks should be used and each check should be supported by an approved invoi

16、ce or other document. Blank checks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.Each check should be compared with the approved invoice before it is issued.Following pa

17、yment, the approved invoice should be stamped PAID.PaidElectronic Funds Transfer (EFT) is a disbursement system that uses wire, telephone, or computer to send cash from one location to another.Regular payments such as those for house, car, and utilities are frequently made by EFT.ELECTRONIC FUNDS TR

18、ANSFER 电子资金划账 A petty cash fund is used to pay relatively small amounts. 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Accounting entries are required when:1 the fund is establishe

19、d,2 the fund is replenished, and3 the amount of the fund is changed.PETTY CASH FUND备用金ESTABLISHING THE FUND 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. Ordinarily, the amount

20、is expected to cover anticipated disbursements for a 3-week to 4-week period. General Journal Date Account title DRCRMar. 1Petty 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 custod

21、ian is issued for the stipulated amount.REPLENISHING THE FUND When the money in the petty cash fund reaches a minimum level, the fund is replenished. The request for reimbursement is initiated by the petty cash custodian. The petty cash custodian prepares a schedule of the payments that have been ma

22、de 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

23、 $13 cash and petty cash receipts for postage $44, freight-in $38, and miscellaneous expenses, $5. 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. A company can safeguard its cash by using a bank as a depo

24、sitory and clearing house for checks received and checks written. New depositors are required to sign a signature card when opening a checking account.USE OF A BANKA check is a written order signed by the depositor directing the bank to pay a specified sum of money to a designated recipient.Three pa

25、rties 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DrawerBankPayee CheckCheck Cash Bank Statement BANK STATEMENTS银行对账单A bank statement shows:1 checks paid and other debits charged against the account2 deposits

26、 and other credits made to the account3 account balance after each days transactionsBANK STATEMENTS 银行对账单Bank debit memoranda indicate charges against the depositors account.Example: ATM service chargesBank credit memoranda indicate amounts that will increase the depositors account.Example: interest

27、 income on account balanceMEMORANDARECONCILING THE BANK ACCOUNT 银行户头的调整Reconciliation is necessary because the balance per bank银行余额 and balance per books账上余额 are seldom in agreement due to time lags and errors.A bank reconciliation should be prepared by an employee who has no other responsibilities

28、pertaining to cash. Steps in preparing a bank reconciliation:1 Determine deposits in transit2 Determine outstanding checks3 Note any errors discovered4 Trace bank memoranda to the records Each reconciling item used in determining the adjusted cash balance per books should be recorded by the deposito

29、rRECONCILING 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

30、.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

31、 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 A

32、ccount 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.