Detailed controls over cash receipts

Sequential receipt record control

Use prenumbered receipts or sequential system-generated POS transactions, with authorization of voids, to support completeness and accuracy.

Sequential receipt record test

Trace receipt numbers to the cash journal and deposits; investigate missing numbers, duplicates, and voids.

Sequential receipt record evidence

Receipts, POS reports, cash receipts journal, and deposit records.

Daily deposit control

Deposit receipts promptly and intact rather than using collections directly to pay expenses, reducing theft and omission risks.

Daily deposit test

Select dates, compare receipt records, deposit slips, and bank credits, and investigate delays or differences.

Daily deposit evidence

Daily cash summaries, deposit slips, and bank statements.

Cash receipt segregation control

The receiver should not solely record receipts, make deposits, and reconcile the bank account.

Cash receipt segregation test

Interview staff, observe the process, inspect job descriptions and permissions, and follow transactions to identify incompatible duties.

Cash receipt segregation evidence

Organization charts, access listings, process descriptions, and transaction records.

Independent receipt comparison control

An independent employee compares daily receipt summaries with deposit slips and bank credits.

Independent receipt comparison test

Inspect review evidence for selected days, reperform comparisons, and investigate discrepancies.

Independent receipt comparison evidence

Signed or electronically approved reconciliations, cash summaries, and bank statements.

Independent remittance processing control

Use a lockbox or independently controlled payment channel and reconcile receipts to customer accounts.

Independent remittance processing test

Trace selected remittances to bank credits, the cash journal, and individual customer accounts; investigate unapplied or misallocated amounts.

Independent remittance processing evidence

Lockbox reports, remittance advices, bank records, and the AR subsidiary ledger.