Internal Control and Cash (Chapter 7) Flashcards
1
Q
Book Error
A
Posting errors made by the bank. Increase or decrease of bank balance.
2
Q
Bank Reconciliation
A
Document explaining the reasons for the difference between a depositor’s cash balance in it’s bank account.
3
Q
Collusion
A
Two or more people working together to circumvent internal controls and defraud a company.
4
Q
Controller
A
The chief accounting office of a company.
5
Q
Custodian of the Petty Cash Fund.
A
The individual assigned responsibility for the petty.
6
Q
Internal Control
A
All methods and measures adopted within a business. In order to Safeguard assests and enhance the accuracy and reliability of its accounting records.
7
Q
Sarbanes-Oxley Act of 2002
A
Requires all publicly traded U.S corporations to be reliable and effective.
