1.4.

Objective of the Study

1.4.1. General Objective
The general objective is to assess internal control over cash in case of Wegagen bank in cmc
branch.
The specific objectives of the study are:
1. To study the cash control system designed and implemented in the bank.
2. To evaluate the internal cash control over cash receipt.
3. To assess the internal cash control over cash payment.
4. To give some recommendation on the cash receipt and cash payment procedures of the
company.
1.5. Significance of the Study
Under this study the researcher identify its weakness and their strength for further improvements
on internal control system over cash by selecting Wegagen Bank with the expectation of
resulting in general view of internal policies and procedures and their practical world application.
The reader can identify the weakness and strength of the internal control cash performance of
Wegagen bank of cmc branch.

1.6. Scope of the Study

Since internal control has many factors like internal control over plant asset, inventory, non cash
payment, and non cash receipts etc .The research will be focused only on the internal control
over cash that cash receipts and cash payments for the Wegagen bank cmc branch.

1.7. Limitation of the Study

The following limitation are faced
 Shortage of time
 Financial problems and somewhat reference materials.
 Some staff members are not willing to give information.
 The class schedule is not suitable.

1.8. Organization of the Paper

The paper contains four separate chapters. The first chapter is the introductory part which
includes background of the study, background of the organization, statement of the problem,
objective of the study, significance of the study, scope of the study, limitation of the study,
organization of the paper and meted of the study parts. The second chapter is literature review
which is the general explanation about the topic. Chapter three is about discussions and analysis
and chapter four is about recommendations and conclusion.

1.9. Method of the Study

For the overall success and effectiveness of the study objective, descriptive research design is
applied in this research. Because descriptive research is aimed at answering what, when, who
and how type of question about the research.
1.9.1. Data Source
A. Primary Source
The primary source is collected using the questionnaire from internal audit committee,
managements, and other financial staff members.
B. Secondary Source of Data
The secondary source that the researcher use are reference books, related written materials that
support to the research and organizations manual.

1.9.2. Method of Data Collection

The researcher uses both sources of data primary and secondary source of data. The primary is
questionnaire to get possible response from different groups. Secondary sources of data are also
reference books, related written materials that support to the research and organizations manual.

1.9.3. Method of Data Analysis

The researcher uses percentage to analyze the responses of the respondents and it presents in the
form of tables to provide comprehensive listing and discussions of the internal control over cash
in the Wegagen bank of cmc branch.

1.9.4. Method of presenting the out comes

Based on the formatted coherent and systematized written report that forwards necessary
recommendation and conclusion. Finally presenting outcome would follow by the researcher
orally or by project to the concurred parties.
 CHAPTER TWO
2. LITERATURE REVIEW
As cash is the most liquid of all assets it is always attracted auditors attention for many good
reason. The ease with which money can be transactions directly or indirectly affect cash and the
diverse nature of the process involved that is billings, collections, deposited and disbursement
implementing internal control in the area of cash management very difficult. It is the most likely
to be diverted and improperly used or purloined by employees. (O. ray Whittington and, kurt pay
2001)

Cash consists of coins, currency (Paper money) checks, money on hand or on deposit in a bank
or similar depository. The general rule is that if the bank will accept it for deposit is cash. Just as
cash is the beginning of a company’s operating cycle, it is usually the starting point for
company’s system of internal control. Cash is the one asset that is readily convertible in to any
other type of asset (Weygant, Kaiso and Kimmel; 1999).

2.1. Internal Control

Internal Control consists of the plan of organization and all the related methods and measures
adopted with in a business to safeguard its assets from employee theft, robbery and unauthorized
use. Enhance the accuracy and reliability of its accounting records by reducing the risk of errors
(unintentional mistakes) and irregularities (intentional mistakes and misrepresentations) in the
accounting process. (Weygent, Kaiso and Kimmel; 1999, p. 280)

Internal control is comprehensive in that it addresses the achievement of objectives in the area of
financial reporting, operating, and compliance with laws and regulations. Many people
interpreted the term internal control as the steps taken by a business to prevent fraud both
misappropriation of assets and fraudulent financial reporting (O.Ray whittingron andkurt pany;
2001, p. 241).

2.2. Objectives of internal control over cash?

The objectives of internal control over cash is to make sure whether the organization is
safeguarding and reporting cash in the appropriate manner. As cash has highest risk and is
difficult to control it needs extensive and tight and effective internal control procedures.
According to meigs and others the method or rule for the achieving internal control over cash
objectives understands in detail operation routine of a particular business for efficient control
procedures.