01:198:170 Lecture Notes - Lecture 9: Bank Reconciliation, List Of The Shield Episodes, Petty Cash

• School: Rutgers University
• Department: Computer Science
• Course: 01:198:170
• Professor: F Geraci

Document Summary

Fraud: a dishonest act by an employee; greed. Results in personal benefit for them at the cost of the employer; intent to deceive. Outside auditors need to put stamp of approval on the numbers and the processes. Internal control: measures in place to make sure fraud doesn"t happen. Control is effective when one person deals w/ one task. Segregation of duties: different individuals do different and separate duties. Person who does the accounting shouldn"t be person who physically deals w/ asset. Physical controls: safety deposit boxes, cameras, locks, alarms, etc. Independent internal verification: someone independent of your job checks your work. Cash receipt controls: most vulnerable to fraud b/c most frequently used, easy to steal. Cashier counts all cash at end of shift, fills out deposit slip. Sales should add up to number of cash left. Over-the-counter receipts: all amounts entered in register, show up on the register tape.