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O-Level Internal controls

What the O-Level syllabus expects for Internal controls, and how to practise it.

What the syllabus expects

• Explain what internal controls are meant to achieve
• Explain how internal controls are applied to cash in hand, cash at bank, cash in transit, cash receipts and cash payments
  Scope: Controls include segregation of duties, custody of cash, authorisation and bank reconciliation
• Explain why a bank reconciliation is prepared
• Spot the discrepancies between the firm's cash at bank balance and the bank statement balance
• Explain what gives rise to gaps between the firm's cash at bank balance and the bank statement balance
  Scope: Differences arise from timing and recording errors
• Draw up an adjusted cash at bank ledger account
• Draw up the bank reconciliation statement
• Work out how correcting those cash-at-bank and bank-statement differences affects cash at bank and the period's profit

More O-Level Principles of Accounts topics

Roles of accounting and of accountants · Stakeholders and what they need in order to decide · Judging profitability · Judging liquidity · Judging efficiency of inventory and trade receivables management · Kinds of business · all of O-Level Principles of Accounts