Chapter 1: Treasury and Cash Management

Structuring Effective Controls Over the Five Primary Transaction Cycles

What’s Inside

This is one part of a series designed to help organizations identify risks and improve internal controls over financial reporting. Click here to access the rest of the series, including a set of five downloadable tools organizations can use to help assess their own controls.

Chapter 1, Treasury and Cash Management, describes the processes, risks and recommended controls associated with managing your organization’s treasury function, bank accounts and investments.

Key Points

Treasury and Cash Management — including investment management — focuses on maintaining liquidity, safeguarding cash, complete and accurate reporting, and managing cash flows. It is key to ensuring financial stability and solvency. Key processes include:

  • Cash management
  • Investment management

Chapter 1 includes an overview of Treasury functions, descriptions of processes and subprocesses, descriptions of internal controls organizations can leverage to manage risks, and a table describing key risks and controls for each process and subprocess.

In addition, this chapter includes a downloadable, customizable risk–control matrix with a detailed list of risk considerations by process, with suggested controls to address each one.

Why It Matters

Whatever the size or complexity of your organization, implementing the right controls over treasury and cash management lays the foundation for a well-controlled financial reporting environment.

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Jody Allred

Jody Allred

Partner-in-Charge, Manufacturing, Distribution and Retail Services

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Jody Allred, CPA, CISA, CGMA, has more than 20 years of experience in public accounting, a deep background in both…

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