PDSY Flashcards
1
Q
What memory device can we use to remember control activities?
A
Supervision Personnel Arithmetic & Accounting Management Segregation of duties Organisation Authorisation and Approval Physical controls
2
Q
What are the four areas that internal controls look at?
A
Purchases cycle
Sales Cycle
Payroll cycle
cash & Cheques
3
Q
What components does internal control consist of?
A
The control environment Entity's risk assessment process The information system Control activities Monitoring of controls
4
Q
What are the possible limitations of internal controls?
A
Human Error
Unusual transactions
Collusion
Special considerations in small companies
5
Q
What are the stages of the Purchases cycle?
A
Order Placed Goods Received Invoice recieved Transaction recorded Cash Payments
6
Q
What are the stages of the sales cycle?
A
Order received Goods Despatched Invoice sent Transaction recorded Cash received
7
Q
What are the stages of the payroll cycle?
A
Clock cards/time sheets submitted and input. Gross and net pay calculated Other amendments entered Final payroll & Payslips produced Payments to Ee's and tax authorities. Payroll costs and payments recorded.
8
Q
What are the states for cash & Cheques?
A
Request for payment
Payment authorisation
Payment made/received
Payment/receipt recorded.
