Cash Receipts Misstatements

Lack of segregation of duties of the functions of access to cash and record keeping

Overstating cash receipts on the books by transferring cash between bank accounts without appropriate recording of the transfer to cover up on embezzlement of cash.

Inadequate supervision of cashiers; failure to encourage customers to obtain cash receipts. 

A cashier fails to ring up and record cash sales and embezzles the cash.

Inadequate controls for reconciling cash register tapes and accounting records.

A bookkeeper accidentally omits the recording of the register for the day.

lack of segregation of duties between personnel who have access to cash receipts and those who make entries into the accounts receivable records.

A cashier embezzled cash payments by customers on receivables, without recording the receipts in the customer’s account.

lack of segregation of duties between personnel who have access to cash receipts and those who make entries into the accounts receivable records.

A bookkeeper accidentally who has access to cash receipts embezzles cash collected from customers and writes off the related receivables. 

Inadequate Reconciliations of subsidiary records of accounts receivable with the general ledger control account.

A bookkeeper accidentally fails to record a payment on  a receivable

ineffective act board of directors, audit committee, or internal audit function

Holding the cash receipts journal open to record next year’s cash receipts as having occurred in this year.

Failure to list and deposit cash receipts on a timely basis. 

Recording cash receipts based on bad information about date of receipt.