Cash receipts and payments controls
Cash receipts and payments controls are procedures designed to authorise, record, safeguard and reconcile cash transactions. Relevant controls depend on the process and may include segregation of duties, prompt banking and independent bank reconciliation. The auditor evaluates specific control objectives and tests controls where appropriate.
Worked example
One employee records receipts, another deposits funds and an independent person reviews the bank reconciliation.
Common mistake
A bank reconciliation alone does not prevent all theft or establish completeness of cash received before recording.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |