Describe Three Threats in the General Ledger and Reporting System

question 65

Essay

Describe three threats in the general ledger and reporting system and identify corresponding controls for each threat.

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Definitions:

Beginning Inventory

The value of the stock of goods a company has available for sale at the start of an accounting period.

Merchandise Purchases

The total cost of goods bought for resale during an accounting period. This includes both cash and credit purchases.

Periodic Inventory System

An inventory accounting method where updates to inventory levels are made at specific intervals, not continuously.

Ending Inventory

The value of the goods still available for sale by a company at the end of an accounting period.