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Acct 407 - Exam 1
Chapter 6
14
Accounting
Undergraduate 4
04/03/2010

Additional Accounting Flashcards

 


 

Cards

Term
significant assertions for cash
Definition
1. existence 2. cutoff 3. valuation (foreign currency)
Term
3 inherent risks related to cash (SAS99)
Definition
1. easy to steal 2. highly liquid 3. difficult to ID
Term
cash collections = (2 things)
Definition
1. revenue 2. investments
Term
disbursements = (4 things)
Definition
1. purchases 2. acquisitions 3. expenditures 4. interest payments
Term
potential misstatements with cash collections (3)
Definition
1. not deposited on timely basis 2. not deposited in full 3. cash collected doesn't link to AR
Term
potential misstatements with cash disbursements (3)
Definition
1. recorded payment multiple times 2. not recorded 3. record wrong amount
Term
5 types of fraud auditors are concerned about
Definition
1. white collar crime 2. employee fraud 3. embezzlement 4. larceny 5. defalcation
Term
8 fraud detection procedures for cash
Definition
1. count petty cash twice in one day (if significant) 2. examine endorsements on cancelled checks 3. audit general journal entries 4. retrieve customer checks 5. use marked coins and currency 6. measure deposit lag time 7. examine documents for alteration 8. ask questions and conduct covert surveillance
Term
3 key documents used in the process over disbursements and collections
Definition
1. purchase req, PO, receiving report, and invoice matched prior to cash disbursement authorization. 2. deposits and remittance advice reconciled to amounts credited to accounts receivable ledger. 3. bank reconciliation
Term
6 physical controls over the security of assets
Definition
1. deposit cash and checks daily and intact 2. lock box account 3. EDI transactions 4. dual custody over cash 5. unused checks secured 6. check imprinting machine
Term
5 key control activities and documents used in the process over disbursements and collections
Definition
1. info processing 2. physical ctrls over security of assets 3. segregation of duties 4. performance reviews 5. reconciliations
Term
detecting possible problems in cash on hand
Definition
count simultaneously with other liquid assets so they can't cover shortage with another pile. client watches so they can't accuse you of theft.
Term
detecting possible problems in undeposited receipts
Definition
trace to cash receipts journal, see deposit later on bank stmt
Term
detecting possible problems in cash on deposit (read notes for full detail)
Definition
1. balance per bank 2. add deposits in transit 3. subtract outstanding chekcs 4. add/subtract debit/credit memos 5. balance per books
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