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Key Terms

  • Bank Reconciliation: Process of comparing bank statement to cash records
  • Deposits in Transit: Deposits made but not yet on bank statement
  • Fraud: Intentional deception for personal gain
  • Fraud Triangle: Three factors (pressure, opportunity, rationalization) that lead to fraud
  • Internal Controls: Policies and procedures to safeguard assets and ensure accuracy
  • Misappropriation of Assets: Theft of company assets
  • Outstanding Checks: Checks written but not yet cashed
  • Petty Cash: Small amount of cash for incidental expenses
  • SEPA: Single Euro Payments Area - standardized euro payment system
  • Tone at the Top: Management's attitude toward controls and ethics