Self Assessment of Internal Control

Cash Receipt Cycle

Objectives and Risks

Objectives	Risks
All collections are properly identified, control totals developed,and collections promptly deposited intact.	-Failure to record cash receipts; withholding or delaying the recording of cash receipts; diverting cash receipts after recording non-compliance with the Cash Management Act.
All bank accounts and cash on hand are subject to effective custodial accountability procedures and physical safeguards.	-Misappropriated cash or petty cash funds; diverted cash receipts unauthorized cash disbursements; loss of funds.
All transactions are promptly and accurately recorded in adequate detail records and appropriate reports are issued.	-Covering unauthorized transactions by substituting unsupported creditsor fictitious expenditures to cover misappropriated collections;underfooting or overfooting cash or receivables.
All transactions are properly accumulated, correctly classified and summarized in the general ledger balances and properly and timely reconciled with bank statement balances.	-Misstating cash balances; covering unauthorized transactions by falsifying bank reconciliation.