BUSS1030 Lecture 5: 5 oneclass

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

Week 5 lecture cash management and internal control. Sold inventory for credit on 5th of january. Note: in cash only record when cash is paid. Small businesses use cash accounting but most other businesses use accrual accounting: balance sheet is prepared with accrual accounting accounts receivable, cash flow statement is based on cash accounting. Income statement is also based on accrual accounting revenue included. Process to provide reasonable assurance regarding achievement of objectives relating to operations, reporting and compliance by management, board of directors and other personnel helps prevent fraud. Includes: control environment, risk assessment, control activities, information and communication, monitoring activities. Cybersecurity must be considered for internal control due to international issues and threats happening more than regulations. Things that are hard to avoid: stolen credit card numbers, computer viruses and trojan horses. Any internal control is better than no internal control listed australian businesses must have internal control committee.