Description

Term

$1$ Setting up hiring practices to employ capable,

trustworthy employees, such as ample training for

the employee's duties upon hiring and ongoing

management supervision throughout the employee's

time with the company.

$2$ Examples include fidelity bonds, security cameras

and alarms, fireproof safes, mandatory vacation, and

job rotation.

$3$ Having two or more employees complete certain

tasks to reduce opportunities for fraud and promote

the accuracy of the accounting records. For example,

accountants must not handle cash, and cashiers must

not have access to the accounting records.

$4$ An examination of the adequacy and accuracy of a

company's financial statements and accounting

system by either an internal or external accounting

professional.

$5$ Clearly defining individual employee responsibilities

to create job accountability.

$6$ Physical or electronic records that provide the details

of business transactions such as sales invoices, order

slips, and customer receipts. These records should be

prenumbered as best practice.

$7$ Tools used to prevent or detect fraud or theft, such as

an accounting system requiring authorized personnel

to enter a username and password to authenticate

identity or a sensor attached to a piece of clothing in

a department store.

$8$ Security measures put in place to protect electronic

data, such as encryption, firewalls, and customer

point$-$of$-$entry passwords or personal identification

numbers.