Gaap Back Dating Invoices Definition - cybertime.ru

Gaap Back Dating Invoices Definition

gaap back dating invoices definition

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Record Keeping All financial statements should be backed up by general ledger reports or additional schedules. You can also reduce fraud and accidental errors by using standardized forms for financial transactions whenever possible, such as purchase orders or sales invoices. These forms should be sequentially numbered so you can identify missing forms in the sequence or new forms used to backdate a previously undocumented transaction.

Verification A supervisor should periodically review all key general ledger accounts for accuracy. The supervisor must be an employee who was not involved in preparing the report. Some companies also employ internal auditors to verify the supervisor's approval. The reviewing employee must sign and date the document as proof of his approval. Supervisors should also look at relevant financial metrics to find areas that may be experiencing efficiency problems.

This may be an indication of fraud or improperly recorded transactions. References 2 Auburn University: Internal Control Frequently Asked Questions About the Author Denise Sullivan has been writing professionally for more than five years after a long career in business. She has been published on Yahoo! Voices and other publications.

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