Fraud And Accounting Assignment: Introduction To Financial Accounting

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BSA201 Introduction to Financial Accounting Assignment 2 Aya Hussein \ 201520100 1-Define fraud and internal control. Fraud is an unethical act employees usually do for different reasons either opportunities like when there is leak of control and unhealthy environment where worker did it never get caught financial pressure where the employees is having a financial problems like a big debt or where they are having a life style that they can't afford just to show of and finally rationalization where the employees think or believe they deserve more . Internal control definition Internal control includes several definitions, including: 1. internal control system is the administrative…show more content…
The principle of internal control are 1) establishment of responsibility : an individual cash Register is more effective 2)segregation of duties : different individual should be responsible for related activities 3) Documentation procedures : Participation to good internal control by showing evidence that transactions and events have occurred . 4) physical control provide essays , vaults and safety boxes for cash, Time o'clock to record their work time, alarm is to prevent breaks in , computers with a key pass or eyeball scanners or fingerprint . 5) Independent internal verification : just checked that the employees of the company I following the rules of the internal control And not using any shortcuts. 6) human resource Control : they concentrate on the employees performance and behavior and developing them, do you train them to be flexible based on the environment and meet company…show more content…
5- independent Internet verification : always compare the total receipt to the bank deposit and do it on a daily base 4- Explain the applications of internal control principles to cash disbursements. The internal control over cash disbursement works better when the payments are by check other than cash it gives proof of payment . How the cash disbursement affect the Internet control principles : 1-establish responsibility: only designated personnel are allowed to sign the check. 2- segregation of duties: on specifics people have The approval to make the payment 3-documentation procedures : sequence to pre numbered checks And for each do to have an approved invoice is a must 4-physical mechanical electronic control: keep the checks away in safe and keep the the access for it limited and print them out in indelible ink . 5- independent Internet verification : it's a must to compare check to invoice , reconcile bank statement monthly

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