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23 Cards in this Set
- Front
- Back
Audit trail
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The documentary evidence of written approval created by key people as they routinely review and verify an expenditure before payment is made.
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Bank reconciliation
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The process of accounting for the differences between the balance appearing on the bank statement and the balance of the Cash account in the company's records.
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Bonding
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The process of carefully checking an employee's background and insuring the company against theft by that person.
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Check
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A written order to a bank to pay the amount specified from funds on deposit.
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Check authorization
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A form prepared by the accounting department after it has compared the receiving report with the purchase order and the invoice. It permits the issuance of a check to pay the invoice.
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Check register
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In a voucher system, the journal in which voucher checks are listed as they are written.
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Control activities
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Policies and procedures established by management to ensure that the objectives of internal control are met.
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Control environment
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The overall attitude, awareness, and actions of management, as reflected in the company's philosophy and operating style, organizational structure, method of assigning authority and responsibility, and personnel policies and practices.
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Imprest system
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A system for controlling small cash disbursements by establishing a fund at a fixed amount and periodically reimbursing the fund by the amount necessary to restore the original cash balance.
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Information and communication
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The accounting system established by management and the communication of responsibilities with regard to the accounting system.
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Internal control
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All the policies and procedures a company uses to ensure the reliability of financial reporting, compliance with laws and regulations, and the effectiveness and efficiency of operations.
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Invoice
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A form sent to the purchaser by the vendor describing the goods delivered, the quantity, price, and terms of payment.
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Monitoring
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Management's regular assessment of the quality of internal control.
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Petty cash fund
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A fund for making small payments of cash when it is inconvenient to pay by check.
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Petty cash voucher
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A form signed by a person who receives a cash payment from a petty cash fund; lists the date, amount, and purpose of the expenditure.
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Purchase order
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A form prepared by a company's purchasing department and sent to a vendor describing the items ordered; the expected price, terms, and shipping date; and other shipping instructions.
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Purchase requistion
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a formal written request for a purchase, prepared by the requesting department in an organization and sent to the purchasing department.
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Receiving report
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A form prepared by the receiving department of a company describing the quantity and condition of goods received.
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Risk assessment
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The identification of areas in which risks of loss of assets or inaccuracies in the accounting records are high.
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Voucher
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a written authorization prepared for each business expenditure when it becomes a liability or obligation to pay.
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Voucher check
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a form of check, used in a voucher system, that describes the reason for issuing the check.
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Voucher register
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The book of original entry in which vouchers are recorded after they have been approved.
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Voucher system
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Any system that gives documentary proof of and written authorization for business transactions.
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