Accounting controls

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  • Benefits of accounting controls
    • Whether or not customers are allowedpurchase goods on CR
    • Checks the various control that are in place to ensure they are working satisfactorily
      • Look out for segregation of duties
        • E.g. 1 The same person will not both invoice customers and act as cashiers when payment is received
        • E.g 2 If someone claims reimbursement of an expense, it will be authorised for payment by someone else
    • All these controls are 'organisational'
      • They don't directly impose controls over the accounting data
      • Also don't ensure that the accounting entries are correct
        • One control measure that does is BANK RECONCILIATION


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