Internal Controls

Chronological accounting record for cash and bank receipts and payments that functions as both a book of original entry and a running cash ledger.

Record used to track small routine cash disbursements, usually under an imprest system with periodic replenishment and review.

Sequence of source documents, approvals, system records, and ledger evidence that lets users trace a transaction from origin to reporting.

Bank-reconciliation item for cash receipts already recorded in the books but not yet shown on the bank statement at the statement date.

Bank-reconciliation item for a check or payment already recorded in the books but not yet cleared by the bank at the statement date.

Audit procedure that starts with an accounting entry and works back to source documents to test whether the recorded transaction is genuine, accurate, and authorized.

Comparison of the bank statement with the cash ledger to explain timing differences, record missing items, and confirm the cash balance can be trusted.

Policies, procedures, and control activities designed to reduce reporting errors, misuse of assets, and control failures.

Process of comparing two related records, investigating differences, and adjusting or documenting items so accounting balances can be trusted.

Internal control principle that divides authorization, recordkeeping, custody, and review duties so one person cannot control an entire risky transaction flow.