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Examples of Internal Inventory and Cash Controls

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A)what are some examples of an internal control for inventory? Cash?

b)What are some examples of proper documentation for cash?

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Solution Summary

This solution describes the process of Internal Inventory Control, Best Practices, and how to document cash transactions.

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Some examples of internal control for inventory:

> Verifying cash collections and daily balancing reports.
> Approving purchase requisitions or purchase orders.
> Approving time sheets, payroll certifications, leave requests and cumulative leave records.
> Approving change orders, computer system design or programming changes.

Additional Interal Controls for Inventory:

There are written procedures for purchasing, receiving, recording assets, and inventory management
Asset records properly classify and identify the assets
Assets are tagged when received
Physical asset inventories are actually performed
Physical inventories of assets are performed when transition of employee asset custodians occurs
Missing assets are logged in a missing asset log
Documentation is prepared when assets are received, sold, moved, transferred, damaged, or disposed of
Asset reconciliations are actually performed
Asset additions are properly valued
Asset capitalization includes costs required to place the asset in service including (direct costs, preparation costs, fees, damages, interest, etc.)
Assets gains and losses are properly recorded
Assets are adequately insured

Internal Controls and examples ...

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