Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Two clerks sharing the same cash register is a violation of which internal control principle?

Segregation of duties

Establishment of responsibility

Physical controls

Independent internal verification

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Verified step by step guidance

Understand the concept of internal control principles: Internal controls are processes and procedures implemented by a company to safeguard assets, ensure accurate financial reporting, and promote operational efficiency.

Review the principle of 'Segregation of Duties': This principle ensures that no single individual has control over all aspects of a financial transaction. It reduces the risk of errors and fraud by dividing responsibilities among multiple individuals.

Analyze the principle of 'Establishment of Responsibility': This principle assigns specific tasks to specific individuals, ensuring accountability and clarity in roles.

Consider the principle of 'Physical Controls': These are measures taken to safeguard assets, such as locks, security cameras, and restricted access to sensitive areas.

Evaluate the principle of 'Independent Internal Verification': This involves regular reviews and audits of financial transactions and records by individuals not directly involved in the process to ensure accuracy and compliance.