CASH COLLECTION AND SECURITY
Terms Of Reference Subject Cash Collection and Security Audit Reference Number Establishment Aim Of Audit: To carry out detailed checking of cash collection, security, banking and reconciliation to the Institutions financial accounts. Scope Of Audit: The examination and evaluation of the adequacy and effectiveness of the University's system of internal control for the collection of cash in financial year 199?/9? Terms Of Reference: 1. To review the reliability and integrity of financial and operating information and the means used to identify, measure, classify and report such information. 2. To ensure that cash collection functions are carried out in accordance with Institutional policies and procedures. Financial regulations and accounting instructions should be comprehensive, generally understood and applied. 3. To review the means used to safeguard assets (cash) from loss. 4. To appraise the economy and efficiency with which cash collection resources are employed. 5. To ascertain whether or not the operations and results are consistent with the Institutional aim of maximising cash flow. I fully understand the aims and objectives of the audit as explained to me by the Internal Auditor:
Signed: Designation: Date:
Control Objectives The objectives of controls should be to ensure that: 1. Written instructions have been issued to and acknowledged by all staff handling or accounting for money. 2. Receipting stationery is adequately controlled. 3. Records are kept to ensure that income is received from all cash points. 4. When cash is handed over a written receipt is issued at that time. 5. Cash is securely held at all appropriate locations. 6. Collections of cash are receipted and banked promptly, in full. 7. Reconciliation procedures correctly account for cash receipted. in Schools and administrative departments Finance Department Income & Payments Office posting to appropriate ledgers bank statement reconciliation Institutional financial accounts.
AUDIT PROGRAM Subject Audit Reference Number Establishment C S CO Compliance Test Substantive Test Control Objective Cash Collection and Security
Audit Test CASH COLLECTION
Written instructions have been issued to, and acknowledged by all staff handling or accounting for money. Receipting stationery is adequately controlled.
Verify the existence of instructions for cash. Is there any evidence of distribution. Examine the system for controlling statiotery. Note who has obtained receipt books. Make arrangements to visit those departments. Is there a definitve list of all cash handling points and a system to alert the cash office to noncollection/banking. Is a collection and deposit ledger maintained by a central department (Finance) that details all income collected from the various sources.
Records are kept to ensure that income is received from all cash points.
When cash is handed over, a written receipt is issued at that time.
Examine the system for issue of receipts by the Finance Department for income deposited by students, schools and departments etc. Examine the system for issue of University receipts by schools and departments to students etc.
Cash is securely held at all appropriate locations.
Visit as many cash collection locations as possible and examine the system for security of cash. This should include sitings of safes, keys, type and amount of income collected.
Carry out a spot check of
tills etc. verifying receipts, x readings etc. to cash and cheques held at the time of the count. S Collections of cash are receipted and banked promptly, in full. Reconciliation procedures correctly account for cash receipted. 6 Control objectives 6 and 7 require the auditor to undertake detailed transaction testing for a recent period to ensure that all income has been correctly accounted for. You will need to check: C & D Ledger to Till Rolls to Paying In Slips to Bank Statements to Sales Ledger Postings to Nominal Ledger Postings to Bank Reconciliation Take note of: Z reading reconciliations under and over bankings cash flow factors use of security firms