ACC 113 Lecture Notes - Lecture 16: Extortion, Financial Statement, Bank Reconciliation

• School: Tunxis Community College
• Department: Accounting
• Course: ACC 113
• Professor: Muccino

Document Summary

Asset misappropriation theft of cash on hand, fraudulent disbursements, false refunds, ghost employees, personal purchases, and fictitious employees most common but the least costly. Corruption bribery, illegal gratuities, and economic extortion falls in the middle between asset misappropriation and financial statement fraud as regards frequency and cost. Financial statement fraud fictitious revenues, concealed liabilities and expenses, improper disclosures, and improper asset values occurs less frequently than other types of fraud but it is the most costly. Bank reconciliation: the process of comparing the bank"s balance with the company"s balance, and explaining the differences to make them agree. Electronic funds transfer (etf: disbursement systems that use wire, telephone, or computers to transfer cash from one location to another. Bank statement: statement received monthly from the bank that shows the depositor"s bank transactions and balances from bank"s perspective. Nsf (not sufficient funds) check: a check that is not paid by a bank because of insufficient funds in a bank account.