BUSS1030 Lecture Notes - Lecture 5: Cash Management, Internal Control, Forensic Accounting

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

Document Summary

Internal control: a process, effected by an entity"s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting and compliance. Five integrated components: control environment, risk assessment, control activities, information and communication, monitoring activities. Relevant to all areas: segregation of duties, good records maintenance, safeguards, approval authorities. Relevant to accounting: physical audits, standardised documents, trial balances, reconciliations. Policies & procedures designed to prevent errors, inaccuracy or fraud before it occurs e. g. segregation of duties. Independent verification of performance: processes for checking the it system. Cybersecurity (protection of internet-connected systems, incl hardware, software & data from cyberattacks. Used by enterprises to protect against unauthorised access to data centres & other computerized systems) Items recorded by company not in bank statement: deposits in transit, outstanding cheques. Items on bank statement & not recorded by business: bank collections, electronic funds transfers, service charges.