INAC

• What should computer systems do in accounting?

  Integrate to upgrade the general ledger
• Why is it important to identify weaknesses in an accounting system?

  Weaknesses can cause inefficiencies and problems
• What are some forms of loss due to weaknesses in the system?

  Money, time, and reputation
• What happens if a business does not review its methods of working?

  It may become unreliable and costly
• What should be monitored to ensure proper accounting procedures?

  Budgeted vs actual spending and inventory levels
• What should be recorded to identify unauthorized actions?

  Levels of unauthorized orders
• What should be compared to ensure inventory accuracy?

  Inventory levels to purchase orders
• What are the review procedures in accounting?

  • Appropriate authorization and best price
  • Perform walk-through tests
  • Match orders to invoices
  • Use internal audit review controls
• What should computer software identify in reporting procedures?

  Unpriced orders
• What do monthly inventory reports show?

  Losses incurred during the month
• What should be summarized in reporting procedures?

  Level of credit notes issued
• What should be tabulated weekly in reporting procedures?

  Differences between till records and cash banked
• How can reporting elements be made understandable to non-finance managers?

  Use visualization tools
• What are some impacts of fraud on a business?

  Loss of money, time, inventory, or revenue
• What should be established regarding fraud opportunities?

  Where controls are weak or absent
• What is a key internal control that should be performed regularly?

  Bank reconciliations
• What needs authorization if personal integrity is broken?

  Personal expenses
• How can weak internal controls affect sustainability?

  They can discourage sustainable practices
• What are the components of overall system evaluation?

  • Internal controls: segregation, organization, authorization
  • Financial information: documents generated, reports required
  • Strengths: controls in place, information needs met
  • Weaknesses: few controls, inappropriate procedures
• What does PESTLE analysis examine?

  External factors affecting an organization
• What does the 'P' in PESTLE stand for?

  Political factors
• What are some economic factors in PESTLE analysis?

  Interest rates and exchange rates
• What social factors are considered in PESTLE analysis?

  Disposable income and demographics
• What technological factors are included in PESTLE analysis?

  Changing technology and online sales
• What legal factors are analyzed in PESTLE?

  Legislation and regulations of countries
• What environmental factors are considered in PESTLE analysis?

  Impact of environmental change on business
• What is the purpose of internal control in accounting?

  Prevent or detect fraud or errors
• Why is a strong internal control system important?

  It minimizes errors and fraud risk
• What are some types of internal control systems?

  Policies, segregation, organization, authorization
• How can strong internal control systems ensure ethical standards?

  By maintaining clear communication of values
• What causes weaknesses in accounting systems?

  Lack of controls and poor implementation
• What are some types of fraud in accounting?

  Theft, false accounting, bribery
• What is the financial impact of fraud?

  Loss of money, inventory, and time
• What are the three elements of financial fraud?

  Opportunity, motivation, and rationalization
• What is the impact of fraud on an organization?

  Financial and non-financial impacts
• What is cloud accounting?

  Accessing information via the internet
• What is a benefit of cloud accounting?

  Remote access to data from anywhere
• What is a risk associated with cloud accounting?

  Control and security of data
• What is AI in accounting?

  Creating machines that simulate human behavior
• What is machine learning in accounting?

  Computers learning from data without programming