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23 Cards in this Set

  • Front
  • Back
Audit trail
The documentary evidence of written approval created by key people as they routinely review and verify an expenditure before payment is made.
Bank reconciliation
The process of accounting for the differences between the balance appearing on the bank statement and the balance of the Cash account in the company's records.
The process of carefully checking an employee's background and insuring the company against theft by that person.
A written order to a bank to pay the amount specified from funds on deposit.
Check authorization
A form prepared by the accounting department after it has compared the receiving report with the purchase order and the invoice. It permits the issuance of a check to pay the invoice.
Check register
In a voucher system, the journal in which voucher checks are listed as they are written.
Control activities
Policies and procedures established by management to ensure that the objectives of internal control are met.
Control environment
The overall attitude, awareness, and actions of management, as reflected in the company's philosophy and operating style, organizational structure, method of assigning authority and responsibility, and personnel policies and practices.
Imprest system
A system for controlling small cash disbursements by establishing a fund at a fixed amount and periodically reimbursing the fund by the amount necessary to restore the original cash balance.
Information and communication
The accounting system established by management and the communication of responsibilities with regard to the accounting system.
Internal control
All the policies and procedures a company uses to ensure the reliability of financial reporting, compliance with laws and regulations, and the effectiveness and efficiency of operations.
A form sent to the purchaser by the vendor describing the goods delivered, the quantity, price, and terms of payment.
Management's regular assessment of the quality of internal control.
Petty cash fund
A fund for making small payments of cash when it is inconvenient to pay by check.
Petty cash voucher
A form signed by a person who receives a cash payment from a petty cash fund; lists the date, amount, and purpose of the expenditure.
Purchase order
A form prepared by a company's purchasing department and sent to a vendor describing the items ordered; the expected price, terms, and shipping date; and other shipping instructions.
Purchase requistion
a formal written request for a purchase, prepared by the requesting department in an organization and sent to the purchasing department.
Receiving report
A form prepared by the receiving department of a company describing the quantity and condition of goods received.
Risk assessment
The identification of areas in which risks of loss of assets or inaccuracies in the accounting records are high.
a written authorization prepared for each business expenditure when it becomes a liability or obligation to pay.
Voucher check
a form of check, used in a voucher system, that describes the reason for issuing the check.
Voucher register
The book of original entry in which vouchers are recorded after they have been approved.
Voucher system
Any system that gives documentary proof of and written authorization for business transactions.