Internal Checks Flashcards
1
Q
What are internal checks
A
The accounting system must include internal checks to satisfy the QC of reliability.
2
Q
What does the SRP allow us to do
A
Determine overall change in cash position
Closing bank balance
3
Q
How to calculate GST payable
A
GST payable balance (at start) -GST paid \+GST received \+/- GST refund/settlement =GST payable/receivable
4
Q
What are some internal control techniques
A
Physical Safeguards- locks, fences Preventative Safeguards- alarms, cameras Separation of Duties Rotation of Duties Training + Hiring Practices Random Checks
5
Q
To protect cash
A
All receipts must be evidenced by a SD Cash registers cleared regularly Two staff members count till Large sums of money banked Cash shortages investigated No payments from registers No borrowing from registers All payments by cheque CR+CP SD numbers should run consecutively Bank reconciliation
