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15 Cards in this Set
- Front
- Back
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Authorization Board of directors' authorization for all company bank accounts |
Minimize Risk Of: invalid payments, stolen cash |
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Authorization approval of cash disbursement transaction prior to preparation of a check & Dual signature requirement for disbursement of large sums of cash |
Minimize Risk Of: invalid payments, incorrect amounts |
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Segregation separation of check-signing authority from accounts payable and cash disbursements record keeping and custody of cash |
Minimize Risk Of: invalid payments, incorrect amounts, stolen cash |
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segregation separation of the ordering, shipping and receiving, inventory control, accounts payable, cash disbursements, info systems, and general accounting functions |
Minimize Risk Of: Fictitious payments, omitted payments, wrong amounts, wrong vendor, timing issues |
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Records and Documents preparation of checks on prenumbered forms |
Minimize Risk Of: Omitted payments |
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Records and documents prior to preparation of a check, matching of supporting docs (vendor invoices, PO, and receiving report) for verification of vendors, authorized prices, mathematical accuracy, account coding, quantities, and descriptions of goods. |
Minimize Risk Of: Fictitious payments, duplicate payments, incorrect amounts or accounts, wrong vendor, timing issues |
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Records and Documents Updating of the cash disbursements journal and accounts payable records as soon as checks have actually been disbursed |
Minimize Risk Of: Invalid payments, duplicate payments, incorrect amounts, timing issues |
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Records and Documents Cancellation of supporting documentation once payment has been made |
Minimize Risk Of: duplicate payments |
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Records and Documents monthly review and reconciliation of vendor statements with accouts payable records |
Minimize Risk Of: omitted payments, fictitious payments, incorrect amounts, wrong vendors, timing issues |
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Security physical controls covering cash and the company's supply of checks |
Minimize Risk Of: stolen cash |
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Security Physical and electronic controls over access to the cash disbursement and accounts payable records |
Minimize Risk Of: Fictitious payments, duplicate payments, incorrect amounts, omitted transactions, wrong vendor, timing issues, accumulation problems |
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Independent Checks monthly performance of bank reconciliation |
Minimize Risk Of: invalid payments, incorrect amounts, omitted payments, issues timing |
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Independent checks Matching of checks with original purchase documentation and verification for item descriptions, quantities, dates, authorized prices, and mathematical accuracy |
Minimize Risk Of: Incorrect amounts, invalid payments, timing issues |
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Independent checks verification of cash disbursements journal for mathematical accuracy and proper posting to the general ledger |
Minimize Risk Of: Incorrect amounts, incorrect accumulation or posting, omitted payments, wrong account numbers, duplicate payments |
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independent checks verification of accounts payable subsidiary ledger for mathematical accuracy and proper posting to the general ledger |
Minimize Risk Of:incorrect amounts, incorrect accumulation or posting, omitted payments, wrong account numbers , duplicate payments
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