Records Control

An employee given responsibility or custodianship of an asset should not be employee charged with maintenance of records for that asset. As an example, it is a good practice to avoid a situation where an employee responsible for maintaining payroll records can also...

Personnel Controls

An organization need to have good personnel controls with competent employees to function properly after company incorporation. This process should begin with selection of employees who have the necessary skills and intelligence to perform job assignment. All...

Internal Control

Internal controls can be characterized as internal administrative controls or internal accounting controls. Internal administrative controls are those procedures and records that can assist management to reach business goals. Internal accounting controls are those...

Periodic Inventory System

Periodic inventory system in accounting is one that does not require a day to day record of inventory changes. Costs of materials used and costs of goods sold cannot be calculated until ending inventories, determined by physical count, are subtracted from the sum of...

Perpetual Inventory System

Perpetual inventory system is one of the two basic ways to process the flow of information about purchases and sales. It is a system to keep continual track of additions or deletions in materials, work in process, and cost of goods sold on a day to day basis. Physical...

Work Sheet

Work sheet is a document or schedule in which an accountant or auditor gathers information to substantiate an opinion concerning an account balance or test of transaction. At the end of an accounting period, a number of actions are necessary. A trial balance must be...
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