ACC* - Accounting ACC* M115 Lecture Notes - Lecture 28: Cash Register, Deferral, Internal Control
5 Oct 2020
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Document Summary
Independent internal verification involves review, comparison and reconciliation of data prepared by others. Example of verification: reconciliation of cash register tape with cash in the register or the reconciliation by an independent person of the cash per books and per bank. Internal auditors are employees of the company who evaluate on a continuous basis the effectiveness of the company"s system of ic. They determine if prescribed ic are being followed and recommend improvements when needed: human resource controls , bonding of employees who handle cash. Bonded employees know that insurance companies will prosecute offenders; b) rotating employees duties and requiring vacation. This deters because can"t permanently conceal improper actions; c) conduct thorough background checks check that they graduated from schools listed. When checking former employer references, do not use numbers provided; look them up yourself. reasonable assurance that assets are safeguarded and accounting records are reliable. Costs of establishing controls should not exceed their expected benefit.
