FRAUD, INTERNAL CONTROL, AND CASH

FRAUD, INTERNAL CONTROL, AND CASH

1. FRAUD: Dishonest act by employee that results in personal benefit to the employee at a cost to the employer

   • TREE FACTORS THAT CONTRIBUTE TO FRAUDALENT ACTIVITY
     • OPPORTUNITY
     • RATIONALIZATION
     • FINACIAL PRESSURE

2. INTERNAL CONTROL

   • METHODS AND MEASURES ADOPTED TO:
     • 1) SAFEGUARD ASSETS
     • 2) ENHANCE ACCURACY AND RELIABILITY OF ACCOUNTING RECORDS
     • 3) INCREASE EFFICIENCY OF OPERAATIONS
     • 4) ENSURE COMPLIANCE WITH LAWS AND REGULATION
   • FIVE PRIMARY COMPONENTS
     • 3) CONTROL ACTIVITIES
     • 4) INFORMATION AND COMMUNICATION
     • 5) MONITORING
     • 1) CONTROL ENVIRONMENT
     • 2) RISK ASSESSMENT

3. CASH

   • RECEIPTS CONTROL
     • DOCUMENTATION PROCEDURES
     • SEGRETION OF DUTIES
     • ESTABLISHMENT OF RESPONSABILITY