MGCR 211 Lecture Notes - Lecture 12: Electronic Funds Transfer, Cash Cash, Debit Card
26 Oct 2016
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Document Summary
To safeguard assets and enhance the accuracy and reliability of its accounting records, companies follow 6 internal control principles. Establishing responsibility includes the authorization and approval of transactions. Work of one employee should provide a reliable basis for evaluating the work of another employee. Documents provide evidence that transactions and events have occurred. Physical controls relate primarily to the safeguarding of assets. Safes, vaults, and safety deposit boxes for cash and business papers. Locked warehouses and storage cabinets for inventory and records. Computer facilities with pass key access or fingerprint or eyeball scans. Television monitors and garment sensors to deter theft. Review, comparison and reconciliation of data prepared by employees. Verification should be made periodically or on a surprise basis. Verification should be done by an employee independent of the personnel responsible for the information. Discrepancies and exceptions should be reported to a management level that can take appropriate corrective action.
