Tag: Internal Controls
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Purchase Orders – Introduction to Fundamentals
Purchase orders are requests to a seller to provide a certain product or service. Purchase orders are a business tool to control both physical and financial outcomes related to operational activities.
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Bookkeeping – Controls in Accounting (Lesson 95)
Just as manufacturing uses controls to ensure quality of product, controls are used in accounting to generate accurate information, maintain security over assets and comply with Generally Accepted Accounting Standards.
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Internal Controls – Fixed Assets
Internal control is a subset of the accounting system to aid in proper reporting of existing assets and liabilities. Internal controls over fixed assets alleviate two distinct risks. The primary risk is physical in nature and relates to the asset getting lost, stolen or damaged thereby affecting the value as reported on the financial statements. The second risk…
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Pizza Restaurant Audit Guide used by the Internal Revenue Service
In the mid 90’s, the Internal Revenue Service created an audit guide specifically for pizza establishments. Today, this guide along with the Retail Industry Guide, specifically Chapter 4 which covers the examination techniques for the food service industry is used to audit the typical family style pizza restaurant.
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Skimming in Business
Skimming is a generic term referring to taking a little bit off the top. In dairy, it refers to the cream at the top of the milk pail. With painting, it refers to a very thin coat of paint to identify imperfections with the wallboard. In business, it means taking a little bit of the revenue without…
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Effective Internal Controls for Cash
All businesses should have internal controls to deter fraud, detect theft, and preserve assets. Effective internal controls for cash prevent the proverbial hand in the cookie jar.