Chapter 6 Flashcards
1
Q
Internal Controls
A
The way Fraud is prevented, detected, or corrected. Managers use an internal control system to monitor and control business activities
2
Q
PPEU
A
Protect assets, Promote efficient operations,Ensure adherence to company policies, Urge adherence to company policies
3
Q
ART of seperation
A
Asset keeping, Record keeping, Transaction approval
4
Q
Human error
A
Negligence, fatigue, misjudgment, confusion
5
Q
Collusion
A
2 or more people get together to commit fraud
6
Q
Adjustments to Bank balance
A
Deposit in Transit, Outstanding check, Bank errors
7
Q
Interest recieved
A
interest earned by company
8
Q
NSF check
A
returned customer check
9
Q
Debit memoratum
A
bank deducted the company bank balance
10
Q
credit memoratum
A
bank increased the company bank balance
