Cash Management Matrix

Associate Level Material

Appendix B

Cash Management Matrix

Directions: Using the matrix, list how each of the principles of internal control works, and give an example for each. Next, list how each of the principles of cash management works, and give an example for each. 

|Principles of Internal Control |How it Works |Example |

|Establishment of responsibility |Making sure that each person is responsible for their own area |A car goes in to mechanic shop and needs a new tire. If the tire|

| | |fails going down the road, the person can go back and know who |

| | |put the tire on as long as only one person did it rather than |

| | |three or four  people |

|Segregation of duties |The work of one employee should provide a basis of another |You have two nurses that work in a doctors’ office. One of them |

| |employee |does everything they are supposed to do every day for a week. |

| | |The second one does absolutely nothing all day but stand around |

|Documentation procedures |Pre-numbered and accounted for, source documents sent to the...