Course Content
Accounting Fundamentals #1-org (Copy 1)

To effectively manage petty cash:

1.Assignment of responsibility: Petty cash is maintained by one employee only.

2.Segregation of duties: The employee responsible for petty cash is not responsible for purchasing or recording the transactions.

3.Authorization: Petty cash transactions must be authorized by the appropriate individuals.

4.Approval limits: If purchases are above a certain threshold, additional approval is required.

5.Documentation: Petty cash transactions must be supported by documentation (petty cash vouchers and receipts).

6.Physical control: Petty cash should be locked in a safe


Qs: Using the activities we just saw and our knowledge of control activities, what are some potential controls over petty cash?