The process of comparing the bank's balance of an account with the company's balance and explaining any differences to make them agree.
A monthly statement from the bank that shows the depositor's bank transactions and balances.
Resources that consist of coins, currency, checks, money orders, and money on hand or on deposit in a bank or similar depository.
Short-term, highly liquid investments that can be converted to a specific amount of cash.
A written order signed by a bank depositor, directing the bank to pay a specified sum of money to a designated recipient.
Electronic funds transfer (EFT)
A disbursement system that uses wire, telephone, or computers to transfer funds from one location to another.
A dishonest act by an employee that results in personal benefit to the employee at a cost to the employer.
The three factors that contribute to fraudulent activity by employees: opportunity, financial pressure, and rationalization.
Company employees who continuously evaluate the effectiveness of the company's internal control system.
All of the related methods and activities adopted within an organization to safeguard its assets and enhance the accuracy and reliability of its accounting records.
A check that is not paid by a bank because of insufficient funds in a customer's bank account.
Sarbanes-Oxley Act of 2002 (SOX)
Regulations passed by Congress to try to reduce unethical corporate behavior.