Documents provide evidence that transactions and events have occurred
Allows management to follow the path of the data recorded in transactions from the initial source documents (such as a sales invoice) to the accounting records
Control procedures should be established for documents
Documents should be pre-numbered
All documents should be accounted for
Documents should have signatures, where possible, to identify who is responsible for the transaction or event
Source documents (i.e. receipts) should be sent to
Finance/Accounting immediately
EXAMPLE: Sales receipts, deposit slip from bank
Audit trails ensure irregularities are found!
- Signatures on documents also help identify who is responsible for the transaction
Qs: How might the documentation be improved in this process?
– Sales clerks could sign off on the sales ticket, showing they agree with the sales amount
As a member of the accounting/finance team you will be highly involved in documentation procedures:
1.Ensuring all documentation is complete, correct and organized
2.Creating certain records to document transactions as they occur
3.Retaining and organizing documentation for future audits