MCS 1000 Lecture Notes - Lecture 4: Internal Control, Cash Cash, Risk Assessment

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Andrew Mac Dougall

Document Summary

Lecture seven chapter 7 internal control and cash. The systems adopted within a company to help it achieve: Also help prevent and detect errors, which cause unintentional misstatements. An effective way to prevent and detect fraud. Good internal control systems have five primary components: Specific control activities used by a company will depend on: The risk it is facing, and management"s assessment. An intentional act to misappropriate (steal) assets or to misstate financial statements. Can only provide reasonable assurance that assets are safeguarded an records are reliable. Coins, currency, cheques, money orders, money on hand or in the bank. General rule: if bank will accept for deposit, it is considered cash. Over the counter, mail-in, and electronic funds transfer (eft) receipts. Internal control over cash receipts are deposited into the bank account daily or are made by electroic funds transfer.