The cash receipts process is the process through which cash is received
- Typically cash received from customers, as a result of providing goods or services
- Cash can be received as physical cash, cheque, e-transfer
- Different process would be followed for each situation
Risks:
Cash received is not deposited or is misappropriated
Cash receipt is inaccurately recorded or not recorded
Qs: Thinking back to the risks we discussed in our last module – what do you think are the risks associated with the cash receipts process?
Qs: Any idea what types of controls could be used to mitigate these risks? Think about the example we just looked at