This report outlines the feature of internal controls and cash management for the Rebel Sport. It will pay particular attention to supply a whole internal control understanding and the control over cash that is very important for the retailer. The specific cash control includes cash receipts and cash payments. The report will present recommendations and support them by using examples.
1.The feature of Internal control
1.1 Competent personnel
The employees should be carefully selected. Each individual should thoroughly understand his or her function and its relationship to other functions in the store. (Gaffikin, Michael, 1993, pg298) All new staff would accept an extensive training.
1.2 Assignment of responsibility
Organization of the firm should fix responsibility for functions so that areas of work are clearly defined. Responsibility and authority for a given function should not be shared, because this may result in duplication of effort and in jobs going undone if individuals think that another is performing the assignment.
(Leo Duffy, Ian Monro, 1991, pg280) For instance, in the sky tower casino, when the layers and backers ask for chips, the dealer would exchange the money to the same amount of chips and stuffs the money into a slotted box. At the same time, the dealer notices another staff to record cash receipt to the computer. At the end of the shift, a drop team exchanges the drop box containing the money for an empty drop box to be used by the next shift.
1.3 Division of work
Division of work is one of the most important facets of the internal control. The duties of individuals should be defined so that no single individual has complete control over a sequence of related transactions. (Gaffikin, Michael, 1993, pg299) Employees who are responsible for keeping records of a firm's assets should...