BUSS1030 Lecture Notes - Lecture 5: Bank Charge, Non-Sufficient Funds, Bank Statement

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

Document Summary

Buss1030 lecture 5 cash management & internal control. Internal control having some policies in place to protect company from fraud, protect its assets and cash. Set boundaries controlling employees, assets, accounts receivable/payable. When pay someone, should have 2 signatures. Audits random check (only look at material transaction) Preventive (have controls in place before something happens) / detective (things have to do when detect a fraud) More cash kept higher risk of fraud business most likely to deposit money into bank. Establish clear lines of responsibility (segregation of duties) Only receive cash payments as credit cards may lead to fraud. No paper trail to say what actually happened hard to take legal actions. Firewall stop outsiders to access information inside. Ways of dealing with potential security issues: comply with payment card industry data security standards, which provides merchant with standards, procedures, tools for protecting sensitive account information ensure effective firewalls & virus protection.