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What are the control activities for the internal controls of cash?

Question:

What are the control activities for the internal controls of cash?

Control Activities

Control Activities, a portion of Internal Controls, are the activities put in place to prevent inaccurate financial reporting activity to occur. They address the inherent, control, and detection risk of financial reporting activity.

Answer and Explanation: 1

Control activities can include the following:

Type of controlDefinitionExample
Separation of DutiesIndividuals cannot complete a cash transaction by themselvesAn individual that approves a cash payment is not also the individual that gives out the cash payment.
Accounting System Access ControlsSystems are established that certain individuals have access to their own systems of need, not all systemsThe cashier can only access the cash register accounts, not the payable accounts.
Physical Audits of AssetsReview of cash assets for accuracyReview the cash drawer of a cash register
Standardized Financial DocumentationFormal reports detail what activity should have occurred in the register for the week. Reconcile the register to the formal report

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What is COSO Internal Control Framework? - Objectives & Components

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Chapter 2 / Lesson 2
43K

Learn about COSO. Understand what the COSO Internal Control Framework is, identify the COSO framework principles, and examine its coverage and activities.


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