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Flashcards in PDSY Deck (8)
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1

What memory device can we use to remember control activities?

Supervision
Personnel
Arithmetic & Accounting
Management
Segregation of duties
Organisation
Authorisation and Approval
Physical controls

2

What are the four areas that internal controls look at?

Purchases cycle
Sales Cycle
Payroll cycle
cash & Cheques

3

What components does internal control consist of?

The control environment
Entity's risk assessment process
The information system
Control activities
Monitoring of controls

4

What are the possible limitations of internal controls?

Human Error
Unusual transactions
Collusion
Special considerations in small companies

5

What are the stages of the Purchases cycle?

Order Placed
Goods Received
Invoice recieved
Transaction recorded
Cash Payments

6

What are the stages of the sales cycle?

Order received
Goods Despatched
Invoice sent
Transaction recorded
Cash received

7

What are the stages of the payroll cycle?

Clock cards/time sheets submitted and input.
Gross and net pay calculated
Other amendments entered
Final payroll & Payslips produced
Payments to Ee's and tax authorities.
Payroll costs and payments recorded.

8

What are the states for cash & Cheques?

Request for payment
Payment authorisation
Payment made/received
Payment/receipt recorded.