AMORES, VIANCA PEARL

BSA-4 10:30-12:00, MW
TERESITA NILDA CHAN-RESTIFICAR, CPA, MAIA
CONDITION
CRITERIA
CAUSE
1.) Bank
All cash
The controller
reconciliation
utilization
borrowed for
was
must be
personal purposes
manipulated
properly
without any
to cover up
authorized.
repayment. There is
the cash
no control with
shortage.
respect to cash
authorization.
2.) Cash
All paid
It was not stamped
disbursement vouchers
paid.
s are recorded should be
twice.
stamped paid
after checks
are issued.
3.) The
The entity
The company
deposit was
must reflect all doesnt verify
recorded but
interbank
reconciling items
the withdrawal transactions
with the bank
was not due
of the entity
reconciliation.
to the fund
as of the cuttransfer to
off date.
another
account.
(KITING)
4.) The
There should
The individual can
employee
be
both keep and
responsible
segregation of destroy the
for opening
duties
remittance advices
the cash
between the
without the
pocketed and person who
management being
destroyed the opens the
aware.
remittance
mail and the
advices.
employee who
prepares the
accounts
receivable
record.

EFFECT
There exist cash
shortages.

RECOMMENDA
We recommend
there should be
proper authorizat
for cash utilizatio

There is cash
shortage.

We recommend
they institute pro
controls over pay
vouchers. Emplo
should stamp pa
after payment.
We recommend
the entity should
determine interba
transactions. In
addition, the enti
should make sur
that they are prop
reflected.

Cash balance is
overstated.

There is decrease in
cash receipts from
customers.

We recommend
the company sho
separate the duti
opening the mail
crediting the
receivable. One
employee should
assigned to do th
former while ano
employee is task
do the latter.

AMORES, VIANCA PEARL

BSA-4 10:30-12:00, MW
TERESITA NILDA CHAN-RESTIFICAR, CPA, MAIA