Internal Check over Cash Payments

1. Use of Cheque:

Cheque should be used for all the payments except the petty cash. It is the first evaluate for internal control in cash payments.

2. Use of crossed cheque:

Before dispatching the cheque it should be crossed so that any other person may not cash the amount.

3. Safety of check book:

Blank check books should be under the safe custody of the responsible officials. So that these may not be misused for payments by any fraud.

4. Entry in cash books:

Payments should be recorded in the cash book as the payment is made.

5. Authorized signature:

Those persons should sign on the cheques that are authorized to sign.

6. Verification before signature:

Before signing on the cheque one should verify the documentary evidence for the payments like, voucher, invoice or ball.

7. Special nature payments:

Director of the company may sanction the payments of special nature. Cashier has no Special nature payments authority to do so.

8. Voucher importance may not be ignored:

For every payments voucher should be obtained voucher should be numbered and field their number should be noted in the cash book against the payment entry.

9. Reconciliation:

A responsible officer should settle the cash book with the bank statement time to time.

10. Wagers sheet preparation:

While maintaining the wages sheet internal control should be applied to prevent fraud.

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Author : commercealls

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