ACCT 1220 Lecture Notes - Lecture 7: Cash Cash, Internal Control, Cheque
28 Nov 2017
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Document Summary
System adopted within a company to help achieve: Help prevent and detect errors, cause unintentional misstatements. E ective way to prevent and detect fraud. Good internal control systems have 5 primary components. Control activities used by company depends on: Intentional act to steal assets or to misstate nancial statements. Con only provide reasonable assurance that assets are safeguarded and records are reliable. General rule: if bank accepts for deposit, considered cash. Over the counter, mail-in and electronic funds transfer (eft) receipts. Internal control over cash receipts is more e ective when cash receipts are deposited into the bank account daily or made by electronic funds transfer. Other examples of control activities over cash receipts. Control activities over cash payments are more e ective when payments are made by cheque or by electronic funds transfer (eft) rather then in cash. Use pre-numbered cheques and account for numerical continuity.
