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Definition
| A notification sent by a stockbrokerage firm to a customer reporting the terms of a purchase or sale of securities |
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Term
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Definition
| This act allows financial institution to create and process electronic "substitute checks" in place of customer written hard-copy checks. The purpose of this act is to decrease the time for check clearing. |
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Term
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Definition
A bank statement covering a specified number of business days (usually 7 to 10) after the client's balance sheet date.
Auditors use this statement to DETERMINE THE TIME (before or on the balance sheet date) the check is issued and paid during the cutoff period==>to determine if the checks were outstandin on the year-end bank reconciliation.
Another use is to determine that reconciling items shown on the year-end bank reconciliation have cleared the bank within the reasonable amount of time. |
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Term
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Definition
Financial instruments that derive their value from other financial instruments, underlying assets, or indexes.
Example are options,swaps, and future contracts. |
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Term
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Definition
| A reference book published monthly by investment advisory services reporting details information concerning all listed and many unlisted securities; includes dividend dates and amounts, current prices of securities, and other condensed financial data |
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Term
| Electronic Data Interchange (EDI) |
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Definition
| A computer network between companies that allows the interchange of data from one company's computer to the other. |
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Term
| Electronic Funds transfer (EFT)system |
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Definition
| A computer system that transmits and processes funds-related cash disbursement and receipts transactions. Increasingly, companies are electronically transferring funds between banks accounts rather than issuing checks |
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Definition
| Manipulation causing an amount of cash to be included simultaneously in the balance of two or more bank accounts. Kitting schemes are base on the float period-the time necessary for a check deposited in one bank to clear the bank on which it was drawn |
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Term
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Definition
| A post office box controlled by a company's bank at which cash remittances, immediate credits to company's bank account, and forward the remittance advices to the company |
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Term
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Definition
| An audit procedure that reconciles tha bank's record of cash activity with the client's accounting record for a test period. the working paper use the for proof of cash is four -column bank reconciliation. |
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Term
| Standard confirmation form |
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Definition
| a confirmation form, agreed to the AICPA, the American Banker Association, and the Bank Administration Institute, that is designed to provide corroborating evidence about the client's account balances and outstanding loans |
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Term
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Definition
| A document authoring a cash disbursement. A voucher usually provides space for employees to initial after they have performed approval functions (This term may also be applied to the goup of documents supporting a cash disbursement.) |
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Term
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Definition
| A special journal used to record the liabilities for payment originating in a voucher system. The debit entries are cost distribution of transaction, and the credits are Voucher payable. Every transaction recorded in a voucher register corresponds to a voucher authorizing future payment of cash. |
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Term
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Definition
| Action taken by the client shortly before the balance sheet date to improve the financial picture presented in the financial statement |
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