Task Team of FUNdaMENTAL aCCOUNtIng School of Business. Sun Yat-sen University (3)A mailroom employee who compares the amount of the check with the remittance advice should handle cash received in the mail I)The remittance advices are forwarded to the accounting department and the che ashier 2)The controller then compares the cash receipts with the control tape from the mailroom, the bank deposit slip from the cashier, and the debit to Cash from the accounting department 3)Many companies use a lock-box system to separate cash duties and establish control over receipts. Customers send their checks directly to the bank (4 )A Cash Short and Over account is used to record shortages or overages in the daily cash les the balance of this account should be small 6. Apply internal controls to cash payments (1)Internal control over cash payments is at least as important as controlling cash receipt (2)Checks are an important control because a check acts as a source document and requires an authorized signature ()The purchasing process, requires the following steps 1)Sales department prepares a purchase requisition 2) The purchasing department locates the merchandise and prepares a purchase order. 3)The supplier fills the order, ships the goods, and mails an invoice to the purchaser 4)When the goods arrive, a receiving report is prepared 5)The accounting department combines all the documents, checks them for accuracy, an forwards this disbursement packet to the appropriate officer for approval and payment 6) Before payment, the documents should be compared to ensure that the business pays cash only for the goods ordered and received. A voucher, a document that authorizes payment, is prepared (4 )Establishing a petty cash fund allows control over expenditures too small to pay by Introduction to the current Situations How Do Those Ethic Issues Stand Out in Modern Business World?Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University (3)A mailroom employee who compares the amount of the check with the remittance advice should handle cash received in the mail. 1)The remittance advices are forwarded to the accounting department and the checks are forwarded to the cashier. 2)The controller then compares the cash receipts with the control tape from the mailroom, the bank deposit slip from the cashier, and the debit to Cash from the accounting department. 3)Many companies use a lock-box system to separate cash duties and establish control over receipts. Customers send their checks directly to the bank. (4)A Cash Short and Over account is used to record shortages or overages in the daily cash sales. The balance of this account should be small. 6. Apply internal controls to cash payments (1)Internal control over cash payments is at least as important as controlling cash receipts. (2)Checks are an important control because a check acts as a source document and requires an authorized signature. (3)The purchasing process, requires the following steps. 1)Sales department prepares a purchase requisition. 2) The purchasing department locates the merchandise and prepares a purchase order. 3)The supplier fills the order, ships the goods, and mails an invoice to the purchaser. 4)When the goods arrive, a receiving report is prepared. 5)The accounting department combines all the documents, checks them for accuracy, and forwards this disbursement packet to the appropriate officer for approval and payment. 6)Before payment, the documents should be compared to ensure that the business pays cash only for the goods ordered and received. A voucher, a document that authorizes payment, is prepared. (4)Establishing a petty cash fund allows control over expenditures too small to pay by check. Introduction to the Current Situations (How Do Those Ethic Issues Stand Out in Modern Business World?)