COB 241 Chapter Notes - Chapter 6: Fidelity Bond, Internal Control, Risk Assessment
5 Oct 2016
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Maintaining internal control: control environment, risk assessment, control activities. Segregation of duties: can be used as a deterrent of corruption; the work of one employee can act as a check on the work of another employee. Fidelity bond: provides insurance that protects a company from losses caused by employee dishonesty. Procedures manual: a document of appropriate accounting procedures. Authority manual: establishes a definite chain of command. Specific authorizations: applies to specific positions in the organization. General authorizations: applies across different levels of management. Cash: currency and other items that are payable on demand. Signature card: shows bank account number and signatures of the people authorized to sign checks. Deposit ticket: identifies the account number and the name of the account. Checks: written using multi-copy, pre-numbered forms, with the name of the issuing business preprinted on the face of each check. Bank statement debit memos: describe transactions that reduce the customer"s account balance (bank"s liability)
