Business Administration 2257 Chapter 7: Chapter 7 - Internal Control and Cash
25 Sep 2015
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Fraud: intentional act to misappropriate (steal) assets or misstate financial statements. Information and communication system must capture and communicate all pertinent information down and up the business and communicate it to appropriate external parties. 4: monitoring internal control systems monitored periodically for adequacy with significant deficiencies reported to management/board, authorization of transactions and activities: assignment of responsibility to. Fidelity insurance insurance protection against theft of assets. Bonded employees know insurance company will prosecute: rotating employees" duties and requiring employees to take vacations. Cash controls: cash: coins, currency, cheques, money orders, and money on hand/deposit in bank, if bank will accept for deposit, it"s cash, doesn"t include postdated cheques, stale-dated cheques, or returned cheques, debit card/bank credit card transactions considered cash. Over the counter receipts: more effective when cash receipts are deposited intact into the bank account on a daily basis/made by electronic funds transfer, bank deposits should be made by authorized employee.
