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 |It’s giving a specific task to one person so he or she will be |The receptionist who signs for all incoming mail. |
| |truthful and responsible for any error. | |
|Segregation of duties |Having a system where on worker evaluates another by dividing |Have one person make bank deposits and someone else reviewing |
| |tasks. |the bank statement. |
|Documentation procedures |Evidence that a transaction occurred through a system of |Verification of receipt organized by days, week, etc. |
| |procedures. | |
|Physical, mechanical, and electronic controls |Having physical, mechanical or electronic devices to handle and |A safety deposit box |
| |prevent unauthorized access. | |
|Independent internal verification |Verification of data to avoid deceit. |Someone who is an in-house appraiser or loans. |
|Other controls |Insurance protection for employees and required vacation time. |Employees who handle private documents have additional |
| | |interviews and background checks. |
| | | |

|Principles of Cash Management |How it Works |Example |
|Invest idle cash |The money is to be invested into either a safe or low risk areas|Putting cash into a safety deposit box at the bank. |
|