Internal Control (Grade 11 NSC Matric Accounting): Flashcards
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Practise the cards
10 cards from this deck
What is internal control?
What is internal control?
Systems & rules to safeguard business assets & resources
3 problems internal control prevents
3 problems internal control prevents
Fraud, errors, and theft
Why is cash a vulnerable asset?
Why is cash a vulnerable asset?
Easy to steal, difficult to trace
What are checks and balances?
What are checks and balances?
Framework ensuring no one controls an entire process
Benefit of fixed price list for cash control
Benefit of fixed price list for cash control
Ensures consistent pricing & easier calculation of takings
Purpose of numbered receipts
Purpose of numbered receipts
Match total cash to receipts issued at day's end
What should a vehicle logbook record?
What should a vehicle logbook record?
Odometer readings, distance, and purpose of trips
What is a stocktake?
What is a stocktake?
Counting all raw materials & finished goods regularly
What are production norms?
What are production norms?
Standard for how much raw material needed per finished item
How does documentation create accountability?
How does documentation create accountability?
Makes it possible to trace problems & identify responsibility