Term
| What is a imprest (payroll) account? |
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Definition
| An imprest account is one that always has the same balance; an exact amount of cash is deposited into the account for aknown specific future purpose, and the same amount leaves the account when the funds for that purpose are expended |
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Term
| What is considered a cash equivalent? |
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Definition
an original maturity date of less than 90 days
saving accounts - time deposits
certificates of deposit (CD)
money market funds |
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Term
| What responsibilities need to be separated to have adequate "segregation of duties"? |
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Definition
Authorization of transactions
custody of assets
record-keeping (accounting) |
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Term
| What distinguishes fraud from error? |
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Definition
Fraud is intentional
knowingly making material misrepresentations with the intent of inducing someone to believe the falsehood and act upon it, and thus suffer a loss or damage |
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Term
If you are concerned about the occurrence assertion for cash receipts during the year
would you Vouch from CR Jnl to supporting evidence
OR
Trace a sample of cash receipts from mailroom remittance list into CR Jnl
IF you find an entry in the CR Jnl for which there is no supporting evidence
Would Cash Receipts be over or under stated? |
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Definition
Vouch from CR Jnl to supporting evidence
overstated |
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Term
If you are concerned about the completeness assertion for cash receipts during the year
would you Vouch from CR Jnl to supporting evidence
OR
Trace a sample of cash receipts from the mailroom remittance list into the CR Jnl
If you find evidence of a CR in the mailroom for which there was no entry in the CR Jnl
would Cash Receipts be over or under stated |
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Definition
Trace a sample of cash receipts from the mailroom remittance list into the CR Jnl
under-stated |
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