Allows the system to track each transaction processed

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Allows the system to track each transaction processed and to identify any out-of- sequence documents Disadvantages: Arbitrary information Hard to make changes and insertions
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Sequential Codes Iist the account Assign the code sequentially
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Block Codes Represents whole classes of items by restricting each class to a specific range within the coding scheme Used for chart of accounts which is the basis for the general ledger Allows for the insertion of new codes within a block without having to reorganize the entire coding structure Disadvantages: Arbitrary information
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Block Codes List accounts Classify the accounts Each clasification assign a block of code
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Group Codes Ech digid represent the spesific meaning or Used to represent complex items or events involving two or more pieces of related data using zones or fields that possess specific meaning Store Number Dept. Number Item Number Salesperson 04 09 476214 99 A coding scheme used to track sales. Disadvantages: may be too long
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Group Codes List the accounts Clasify the accounts Assign the code to the accounts
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Alphabetic Codes May be used for many of the same purposes as numeric codes and may be assigned sequentially or used in block and group coding techniques May be used to represent large numbers of items; the number of possible represents per space is 26 Disadvantages: Arbitrary information
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Mnemonic Codes Alphabetic characters in the form of acronyms and other combinations that convey meaning Do not require the user to memorize the meaning; the code itself conveys a high degree of information NY New York Disadvantages: Limited usability and availability
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Documents Prenumbered Simple Easy to fill in
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GLS Database general ledger master file principal FRS file based on chart of accounts general ledger history file used for comparative financial support journal voucher file all journal vouchers of the current period journal voucher history file journal vouchers of past periods for audit trail responsibility center file financial data by responsibility centers for MRS budget master file budget data by responsibility centers for MRS
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Potential Exposures in the GL/FRS Risks Improperly prepared journal entries Unposted journal entries Debits not equal to credits Subsidiary not equal to general ledger control accounts Inappropriate access to the general ledger Poor audit trail Lost or damaged data Account balances that are wrong because of unauthorized or incorrect journal vouchers
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GL/FRS Control Issues Transaction Authorization - journal vouchers must be properly authorized by a responsible manager at the source department Segregation of Duties - general ledger clerks should NOT: have recordkeeping responsibility for special journals or subsidiary ledgers prepare journal vouchers have custody of physical assets
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