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Definition
| Polocies and procedures that management establishes to ensure that the objectives of internal control are met. |
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| A company's ethics, philosophy and operating style, organization structure, method of assigning authority and responsibility, and personal policies and practices. |
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| A system for controlling small cash disbursements by establishing a fund at a fixed amount and periodically reimburinsing the fund by the amount necessary to restore the original cash balance. |
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| Information and communication |
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Definition
| A component of internal control that refers to the way in which the accounting system gathers and treats information and how it communicates responsibilites within the system. |
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Definition
| A process designed by a company to establish the reliability of the accounting records and financial statements in accordance with gererally accepted accounting principles (GAAP) and to ensure that the company's assets are protected. |
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| A form that a vendor sends to a purchaser describing the goods delivered and the quantity, price, and terms of payment. |
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| Management's regular assessment of the quality of internal control. |
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| A fund for making small payments of cash when it is inconvenient to pay by check. |
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| A form signed by a person who receives cash from a petty cash fund; lists the date, amount, and purpose of the expenditure. |
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Definition
| An actual count of all merchandise on hand. |
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| A form that a company's purchasing department sends to a vendor describing the items ordered and the quantity, price, terms, and shipping date. |
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| A formal written request for a purchase that a company's credit office (requesting department) sends to the purchasing department. |
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| A form on which an employee in a company's receiving department notes the quantity, type of goods, and their condition upon delivery from the vendor. |
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Term
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Definition
| The identification of areas in which risk of loss of assets or inaccuracies in accounting records is high. |
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