Evaluating staff and the controls limitations these

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
evaluating staff and the controls Limitations These will not work if COLLUSION happens. Collusion is 2 or more employees willingly or unknowingly working around the controls. 4-1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 04 - Internal Controls, Accounting for Cash, and Ethics 4. Information and communication – internal and external reporting process and this includes assessment of technology. 5. Monitoring – assessing the quality of the internal control over time and taking action when necessary to improve it and fix any issues. READ PAGES 126-128 on your own!!! Accounting for Cash Controlling Cash Cash receipts What is the risk?? Easy to not get the cash into the register Cash Disbursement What is the risk? Pay fake bills/invoices One important way to keep control is the checking account and doing a reconciliation of the checking account. This allows the supervisor to review that all transactions are being recorded and a chance to review materials for a month. The bank statement only shows what has been deposited and paid by the bank. It is not the “TRUE” cash balance. We prepare a bank reconciliation to determine the adjusted balance per bank which EQUALS the adjusted balance per books Key terms: -Deposit in transit (add) -Outstanding checks (less) ^ bank related items v checkbook/book related adjusting items - Acct receivable collections - interest earned - NSF check - Service charge by the bank I want you to know how to record 2 of them: Service charge Assets Liability Equity Cash Retained earnings - amt of charge - amt of misc. expense 4-2
Image of page 2
Chapter 04 - Internal Controls, Accounting for Cash, and Ethics NSF checks (customer check bounced) Assets Liability Equity Acct receivable Cash + amt of check - amt of check Set up a bank reconciliation:
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern