ADMS 2500 Chapter Notes - Chapter 8: Cheque, Bank Reconciliation, Bank Statement
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ADMS 2500 Full Course Notes
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Internal control: could there be dishonest employees where you work, see text pg. 372 for examples: policies and procedure need to be in place to, optimize the use of resources, prevent & detect errors & irregularities, safeguard assets, maintain reliable control systems. Limitations of internal control: human element may have employee fatigue, carelessness, or indifference, collusion 2 or more people work around controls, size of business may be difficult to segregate duties in small businesses. 400 401 (be8 2,3,4: pp. Petty cash fund: may need cash for small payments (writing a cheque is not practical) Imprest system advance of a certain sum of $ for a designated purpose. 3 steps: establish fund, make payments from fund, replenish fund. Homework: p. 401 (be8 5, p. 402 (e8 5) Making payments: management may limit size of expenditure or use of fund, e. g. no loans to staff, each payment must be documented on prenumbered petty cash (pc) receipts see p.