The internal control system of the company is found very weak and there are the chances of cash being misappropriated. Recommendations to company for the enhancement of the internal control system of the company are as follows:
The cashier should not have access to the books of accounts. The books of account should be handled the accountants who should not be directly involved with the cash transaction.
All the cash collections should be deposited to the bank.
Cash payments should be made through the Bank.
Petty expenses should be managed through the Petty cash book, for which purpose the petty cash, imprest should be provided to the petty cashier through the bank.