Page 235 - Microsoft Word - 00 ACCA F1 Notes Prelims.docx

Financial systems and procedures

Cash Safeguard ensuring cash is kept safe from theft
company’s assets

Efficiency ensuring cash is banked promptly, so as to gain
interest

Prevent fraud ensuring employees do not claim for expenses
not incurred

Prevent errors ensuring the entries in the cash book are correct

Inventory Safeguard ensuring inventory is kept free from damage
company’s assets

Efficiency ensuring inventory is only produced when it can
be sold quickly

Prevent fraud ensuring inventory cannot be stolen by
employees

Prevent errors ensuring costs of finished goods are calculated
properly

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