Internal control is to safeguard on the Company's assets (e.g. cash on hand, inventories, and etc) and ensure accuracy of the book recording.
One of the key element of the internal control is segregation of duties, that mean our employee would have different responsibility for recording and authorizing the transaction.
Let use one of our petty cash claim as example:
When a staff request for a petty cash purchase, the purchase need to be approved by the department head before request the cash from our finance department, this has ensure the transaction request and approve by different employee.
Then one of our finance team member will disburse the petty cash to the staff and another finance team member will record the petty cash book. This has ensure the cash is proper keep and record by different employee.
At last, the petty cash voucher will pass to account team and record into accounting system. This has ensure the recording of petty cash book and accounting book by different employee are accurate. A petty cash count will be conduct by the account team member to ensure the physical cash on hand are accurate as well.
From the above, our Group has segregation of duties to safeguard our Group's asset (petty cash) and ensure the book's recording are accurate with the approval from the respective department.
Mr. Hobart Chan Chien Hui
Group Finance Controller
GoodMorning Global Group Holdings Berhad