Describe Five Threats in the Production Cycle and the Applicable

question 81

Essay

Describe five threats in the production cycle and the applicable control procedures used to mitigate each threat.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the account ledger but not yet cleared or cashed by the bank.

EFT Deposit

An electronic funds transfer deposit, which represents the digital transfer of money into a bank account.

Petty Cash Fund

is a small amount of cash kept on hand by a business for making immediate and minor payments, reducing the need for check transactions.

Journalize

The process of recording business transactions in a journal, the first step in the accounting cycle.