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Validates transactions through management approval or automated systems.
Ensures data accuracy by comparing multiple data elements.
Verifications check items against policies, while reconciliations compare data elements.
Protect assets through secured facilities and access restrictions.
Reduces fraud risk by separating authorisation, recording, and custody functions.
Costs should not exceed benefits, especially in smaller companies.
Faulty judgement may lead to ineffective control measures.
Ineffective operation of controls may occur, leading to errors.
Employees may bypass controls, increasing fraud risk.
It can render the internal control system ineffective.
Ensures orders are processed only if goods are available.
Outdated limits can lead to sales to poor credit risks.
Helps ensure completeness and prevents missed orders.
GDNs confirm actual shipment, ensuring accurate billing.
May lead to late invoicing and revenue cut-off issues.
Must be approved by senior management to prevent revenue loss.
Regular statements reduce the likelihood of disputes.