Describe the procedures used by businesses to control cash.

- Keeping control over cash is extremely difficult.

- It is important to:

- safeguard cash with physical controls such as vaults

- adequately segregate the custody of cash from the authorization of payments and the accounting records

- Cash accounts include:

- cash in bank

- change funds

- petty cash

- Controls over these cash accounts include:

- bank reconciliations

- daily deposits and recording cash over and short amounts

- accounting procedures for petty cash funds