(b) Control Objectives and Activities
i. Cash sales – Control objectives:
These include:

• To ensure that all monies received are recorded./li>
• To ensure that cash sales are banked into the company’s bank account.
• To ensure that monies to which the enterprise is entitled are received.

Cash sales – Control activities:

• Cash sales should be restricted to a few selected number of employees.
• Cash balance should be locked up in a safe at all times.
• Cash insurance policy should be taken by the company.</li
• Cash sales should be lodged intact daily with the bank.
• Approved price list should be conspicuously displayed in the sales area.
• Reconciliation of cash sales and balances daily with the bank.
• Check for evidence that till roll totals or receipts totals are checked against cash received by an authorised person.
• If cash receipts are used, they should be pre-numbered, a register of cash sales books should be maintained, used booklets should be returned.
• A responsible official should sign off cancelled cash sales invoices or receipts.

ii. Lodgements into bank – Control objectives:
These include:

• To ensure all cash sales are lodged into bank intact on daily basis.
• To ensure that cash sales are reconciled with bank lodgements and balances.

Lodgements into bank – Control activities:

• Daily reconciliation of cash sales and lodgements into the bank account.
• Call over of all cash lodgements by persons other than the cashier;
• Fidelity guarantee should be taken on all staff taking money to the bank;
• Proper safeguards should exist over money held;
• There should be restrictions on individuals authorised to prepare and hold cheques;
• Sales ledger personnel should have no access to the cash or the preparation of the paying slip; and
• Periodical comparison should be made between cash and cheques received and banked.