6 principles of control activities applied to cash receipts

establishment of responsibility

designated personnel handle cash. ex, only cashiers may operate cash registers

segregation of duties

different individuals receive, record, and hold cash. assigned to different individuals

documentation procedures

use remittance advice (receipts), computer records, deposit slips

physical controls

store cash in safe, deposit at bank. ex, all over the counter receipts are entered in cash registers

independent internal verification

supervisors count cash daily, compare receipt totals to bank deposits daily. ex, daily cash counts are made by cashier department supervisors

human resource controls

employee take vacations, are bonded, have background checks. all cashiers are bounded