Final answer:
The primary internal control goal for cash receipts is to ensure accurate recording and safekeeping of cash. This is achieved through segregation of duties, use of physical controls, and regular reconciliations and reviews.
Step-by-step explanation:
The primary internal control goal for cash receipts is to ensure that all cash received is promptly recorded and deposited intact. To achieve this, companies establish various control activities, such as segregation of duties, where the responsibility for cash handling and record-keeping is assigned to different employees. This reduces the likelihood of theft, fraud, or errors. Moreover, the use of physical controls, such as locked cash boxes and safes, as well as reconciliations and regular reviews of cash-related transactions, supports the reliability and accuracy of cash transactions.
To provide additional security, businesses often implement control activities that include: timely recording in accounting records, periodic comparison of recorded amounts to actual physical cash, and independent reviews of cash handling and recording processes. For example, the person responsible for accepting cash payments should not be the same person who records these transactions in the financial records. Furthermore, surprise cash counts and reconciliation of bank statements by someone not involved in cash handling can prove effective in detecting discrepancies early on. Altogether, these measures aim to safeguard company assets, enhance the accuracy of financial statements, and deter misappropriation of funds.