top 6 section 2

  1. cash receipts process steps (6-9)
    • -remittance listing
    • -deposit slips
    • -cash receipts file and A/R master file
    • -Master file (G/L)
  2. step 6: remittance listing
    as payments are received in the mail from customers, the checks should be immediately restrictively entered ("for deposit only") by the mail openers and recorded in a remittance listing
  3. each remittance listing should include:
    date received, customer's name and acct number, amount received, type (check, currency, coin) and initials of the mail openers (two people)
  4. checks (and cash, if any) and a copy of the remittance listing are sent to the
    cashier for deposit remittance advices and the other copy of the remittance listing are sent to the acct department fom recording the cash receipts
  5. internal controls in step 6 (remittance listing)- 4
    • -authorization (remittance listing authorizes the credit to a specific customer's accts receivables)
    • -Segregation of duties (custody of assets (mail openers) is segregated from recording of cash receipts (acct dept)
    • -Supervision (2 people in mail room)
    • -Adequate documents and records (remittance listing is pre-numbered (by date prepared) checks are restrictedly endorsed)
    • -Access controls: access to customers' payments is restricted to the mail openers and cashier
  6. deposit slips
    after receiving the checks and a copy of the remittance listing from the mailroom the cashier verifies the checks against the remittance listing and verifies the mathematical accuracy of the remittance listing
  7. after verifying the remittance listing, the cashier prepares
    the daily deposit slip and the customers' payments are deposited
  8. internal controls in step 7 (deposite)- 4
    • -Segregation of duties (custody of assets (cashier) is segregated from recording of cash receipts (acct dept)
    • -Adequate documents/records (deposit slip prepared for each dept)
    • -Access Controls (customer's payments are deposited daily in the company's bank)
    • -Independent verification (cashier verifies the remittance listing)
  9. step 8 is?
    cash receipts file (C.R. Journal) and A/R Master file (A/R Sub) internal controls
  10. step 8 (cash receipts and A/R master file) internal controls -3
    • -Segregation of duties (within recordkeeping function A/R is separate from G/L
    • -Access Controls (locks or passwords to journals and sub ledgers)
    • -Independent verification (periodically the A/R subsidiary ledger is reconciled with the G/L)
  11. Step 9: master file (G/L)
    periodically the A/R department sends totals for daily (or weekly) cash receipts transactions to the general ledger department for posting to the cash and A/R accts in the master file (G/L)
  12. internal controls in step 9 (master file)-3
    • -Segregation of duties (same as 8)
    • -Access controls (locks or passwords for G/L)
    • -Independent verification (same as 8)
Card Set
top 6 section 2
topic 6 section 6