Definitions
Processes, procedures, and policies to manage and protect cash assets
What is Cash Control?
Prevents financial loss from fraud
Reduces risk of internal and external theft
Improves Accuracy
What is Cash Control?
Why should blank checks be secured?
People who are trying to steal can't access them.
Security measure requiring two individuals to complete certain financial tasks or transactions
What is Dual Control?
Limits access to authorized individuals only
Prevents unauthorized transactions or withdrawals
Protects the business from financial harm
What is a Bank Account Access?
Who should have access to a business’s bank accounts?
Account, CEO and Board.
Regular comparison of internal financial records with bank statements
What is Timely Reconciliation?
Prevents fraud by ensuring no single person has full control
Provides a system of checks and balances
What is Dual Control?
Why is it important to limit who has access to bank accounts, and what could happen if this access isn’t controlled?
So fraudulent people can't steal or take advantage of company.
Secure storage and handling of blank checks
What is Security of Check Stock?
Helps identify errors or unauthorized transactions early
Protects against fraud and financial mismanagement
What is Timely Reconciliation?
What is the solution to protecting a company’s main asset?
Internal controls
Act of 2002 helped restore confidence in the financial markets by cracking down on accounting errors and protecting investors from fraudulent accounting and financial reporting practices.
What is The Sarbanes-Oxley Act of 2002?
Prevents unauthorized access to blank checks
Reduces risk of fraudulent check writing
Protects against misappropriation of funds
What is Security of Check Stock?
What is reconciliation?
Making sure Bank and Book statements match and fixing mistakes.