Business Administration 2257 Chapter Notes - Chapter 7: Money Market Fund, Electronic Funds Transfer, Accounts Receivable
3 Oct 2018
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Internal control system must capture and communicate all pertinent information to the appropriate internal and external users: monitoring. Internal control systems must be monitored periodically for their adequacy: significant deficiencies must be communicated to those in authority. Control activities: authorization of transactions and activities, segregation of duties, documentation, physical controls, human resource controls. It is important that the right level of individual or right department develop the internal control policies. Most companies now require employees to submit the actual boarding passes, together with the invoice from the airline, when claiming travel expenses. This confirms the employee did that the flight and reduces the risk of reimbursing the employee more than once for a cancelled flight or one that wasn"t take(cid:374) Physical controls: can be used to safeguard assets and enhance the reliability of accounting records, physical controls (ie. safes, vaults, locked warehouses, password protected computer facilities, alarms, time clocks for recording time worked)
