Effective internal control of cash should include the separation of the duties for receiving and disbursing cash.

Separation of duties is a key component of effective internal control, particularly with regard to cash handling. By separating the duties of cash receipt and cash disbursement, a company can reduce the risk of fraud and errors, and improve the accuracy and reliability of its cash records. For example, having one employee responsible for both receiving and disbursing cash could create opportunities for theft, misappropriation or mistakes, whereas having separate employees perform these duties can help ensure that each transaction is properly recorded and supervised.