Audit of Cash and Bank Balances


(i) Segregation of duties relating to authorization of transactions, handling of cash/ issuance of cheques and writing of books of account, and rotation of the duties periodically;

(ii) Proper authorization of cash and banking transactions;

(iii) Daily recording of cash transactions;

(iv) Safeguards such as restrictive crossing of cheques, use of pre-printed, pre-numbered forms;

(v) Periodic reconciliation of bank balances;

(vi) Reconciliation of cash-on-hand with book balance on a daily basis or at other appropriate intervals, including surprise checks by higher authorities,

(vii) Safe custody of cash, cheque books, receipt books, etc; and security documents;

(viii) Cash/ fidelity insurance


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