Assessment of Internal Control over Cash Collection (The Case Study of Wegagen Bank S. Co., Hosana Branch)

Abstract

Cash collection technique represents “the management of cash inflows and outflows of the firm, as well as the stock of cash on hand. The primary goal of internal control over cash collection function is to minimize the amount of cash a firm must hold in order to carry out its normal business activities on one side, and on the other, to obtain sufficient cash funds that would enable the firm to take trade discounts, to maintain its credit rating and to meet unforeseen cash needs. This study will be specific to Wegagen bank S. C., Hosana branch with the aim of assessing the internal control on cash collection. From the total of 38 workers of the bank, samples of 20 employees were selected based on simple random sampling technique. In doing so, the researcher was used the data mostly from both primary and secondary sources. The collected data from both sources were processed using the basic data processing procedures and ready for analysis. The data analysis was commenced, using simple descriptive statistical analysis method. So, the result of this result showed that there is proper internal cash control system and also have good cash collection procedures and practices in the bank. Finally, the bank should continue its practice and update his employees through training with the new way of working