Flashcards
Internal Controls
Flashcards do conjunto (7)
- 1Why do we need internal controls?To safeguard an organisations assets
To establish policies and procedures
To set responsability for different areas within an organisation
Establish secure handling of finances
Safe guard employees? - 2Give an example of a control over transactional limitsCheques over £500 need senoir accountant authorisation
Petty cash operates on the imprest system
Purchase of non current assets needing director or budget holders authorisation. - 3What is segregation in the accounts department?Separation of duties, where a different person will create invoices to the individual who receives and processses payment.
- 4KPI analysis is an important skill for accountants. What is a KPI? Can you give an example of one?Key performance indicator
Gross profit margin
Receivable days - 5Why should physical counts of inventory be needed in a digital accounting systempossibility of theft
- 6Fraud will usually involve a loss of some sort. Can you name several types of loss a business may experience due to fraud?loss of money
loss of inventory
loss of time
loss on disposal of assets - 7Name some of the techniques/ policies that can help make an accounting system fraud resistant?Fraud prevention staff
management responsability
management supervision
segregation of duties
lock and key
authorisation
passwords