Access controls: only key employees have access to authorize transactions using the bank account

• Specific employees may only have access to ‘initiate’ transactions and others have access to ‘approve’ transactions

Examples:

• Cheques: Only specific employees have authority to sign cheques and cheques above a certain amount must be signed by two people
• Bank transfers: Only certain employees can ‘initiate’ transactions and others can ‘approve’ them

Qs: Thinking back to our internal controls, what are some key controls we should have around bank cash?

Segregation of duties: the cash receipts / disbursement processes are set up to ensure different employees have different duties

Examples:

• Documentation (including cheque or transfer) is prepared and compiled by one individual, the cheque and related documents are reviewed and approved by another
• Individuals who make deposits do not have access to make withdrawals

Independent checks of performance: a number of checks occur throughout the processes

Examples:

• Bank reconciliations are reviewed by the Finance Manager or Controller
• Disbursement documentation is reviewed by the Finance Manager, before cheques are signed