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Accounting At Your Fingertips, 2e by George Murray, CPA.

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3.3 Implementing Internal Controls Over Cash

Types of Theft and Fraud

Physical Safeguards

Procedural Safeguards

Sample Procedures

Cash is highly transferable, meaning it has a high degree of liquidity, which also means it’s easy to steal. The U.S. Chamber of Commerce estimates that embezzlement alone costs businesses $4 billion a year, showing that perhaps even the most trusted employees aren’t immune to the temptations that come with handling cash.

Liquidity describes a company’s ability to meet debt payments and operating expenses.

Embezzlement is the process of stealing cash from a company while trying to cover it up by omitting transactions or otherwise falsifying accounting records.

This subchapter deals with setting up a system of policies ...

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