BUSS1030 Lecture Notes - Lecture 5: Double-Entry Bookkeeping System, Embezzlement, Financial Technology

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

Document Summary

Most small businesses empty their cash into the banks at the end of the weeks to avoid it getting stolen. Even double entry bookkeeping becomes unwieldy as the volume of transactions increases: this issue of scale is often dealt by subdividing parts of the accounting process to different individual groups. Rigour around performance measures: risk assessment- a precondition of risk assessment is the establishment of objectives, linked at different levels of the entity. These objectives are set out by (cid:373)a(cid:374)agers (cid:449)ithi(cid:374) (cid:272)ategories li(cid:374)ked to operatio(cid:374)s, reporti(cid:374)g a(cid:374)d (cid:272)o(cid:373)plia(cid:374)(cid:272)e to (cid:271)e able to identify analyse risk to these objectives. > more control needed: control activities- actions established through policies and procedures that help e(cid:374)sure that (cid:373)a(cid:374)age(cid:373)e(cid:374)t(cid:859)s dire(cid:272)ti(cid:448)e to (cid:373)itigate risks are (cid:272)arried out. There (cid:373)ay (cid:271)e preventive or detective in nature and can encompass manual and automated activities. Letting employees know what the control activities are to ensure they are carried out.