You are the newly appointed financial manager of Sami Partners company UAE. When you reviewed the working of finance department, you found that the department doesn’t have proper internal control system to monitor the payment of Petty cash in the company. You realized that the current system may leads to leakage of cash, you are planning to establish an internal control system to address the issue.

Available information for you:

• Senior manager sanctions some amount cash to the cashier daily to pay all expenses

• Neither voucher is maintained nor accounting records by the cashier because transactions for small amounts

• Whatever money left with the cashier may give back to the senior manager in a weekly basis.

Question:

You are required to frame an internal control system based on the available information. You may use a chart or model to illustrate your answer.

Answer rating: 100% (QA)

IMPLEMENTING EFFECTIVE INTERNAL CONTROL SYSTEM Step 1 Establish an Appropriate Control Environment The core of any organization is its people their in... View the full answer