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ACCOUNTING FORMS AND RECORDS

The history of humanity changed with the invention of the printing press. Since the
beginning of history, man has felt the need to express his ideas and thoughts in written
form. The business world does not escape this need, which is why forms arise. Forms
are the models that are used to capture information for the registration, control and/or
process of an entity's operations. The application of forms is extremely broad in
business. For example, when you make a deposit in a bank, the first thing you do is fill
out some type of form to leave evidence of the transaction carried out; A copy of the
document is given to you, after being validated by the cashier as a sign of agreement.

All institutions are required to document their transactions, and leave evidence of all
the work carried out by employees through written documents. The vast majority of the
information corresponding to the transactions carried out by the entity are reflected in
forms.

With the advancement of information technology, many forms are being replaced by
operations recorded electronically and due to this the operations and transactions that
support the accounting records are initiated, authorized and processed electronically,
where even the people who transact the operations are not known personally.

CONCEPT OF FORMS.

It is understood as an organic set of records or documents intended for the recording of

facts translated into accounting formulas as they become known. An Accounting
System is characterized by the number and arrangement of the accounting books
necessary for the organization, complying with legal regulations. (Granados, Latorre, &
Ramírez, 2010:43)

The Accounting Forms contemplate the support of the records of the operations based
on documents adopted to the policies of an entity, allowing the reliability of the
Financial Statements and the certainty of the records.
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CHARACTERISTICS OF THE FORMS:

Every form must meet certain necessary characteristics, so that it is considered

designed according to the needs of each business. It must be kept in mind at all times
that the design of a form must respond to the usefulness it provides in the procedure in
which it is used. The minimum characteristics that every form must have are the
following:

- Simplicity in its design

- Each form must be designed for a specific procedure.

- The order in which the information is requested must be done in the same
sequence in which the data is generated.

- The same employee should not validate two forms that, for control reasons,
internal, are incompatible. For example, the person who prepares a receiving report
cannot approve the payment order or the check with which an obligation is paid.

- Copies should be made and distributed only to those departments that manage
the information they contain.

- To the extent possible and taking into account the concept of cost/benefit, pre-
numbered forms should be established.

- The forms must have adequate spaces for approvals and/or

authorizations.

- Every form must be coded under some scheme, in such a way that it is
can achieve identification or association of the format to a specific function or area and
the last revision date is indicated.

CLASSIFICATION OF FORMS:

The forms can be classified:

According to their presentation they can be:

- Simple

- Compounds

Simple forms are those documents that are represented by a single form and do not
have attached copies. In some cases, such as deposits to a savings account, a single
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sheet is required and evidence of the deposit remains in the corresponding passbook.
Letters on Company letterhead are another example of this type of forms.

Composite forms have more than one sheet and are prepared based on a predefined
format and under a special storage or filing scheme. Within this line, we can distinguish
the following types:

- of blocks

- Checkbooks

- Continuous forms.

According to their use, they can be:

The forms to originate an action have the objective of starting the process or
procedure of some group of tasks with a certain objective. For example, the issuance
of a materials requisition may give rise to the issuance of a purchase order.

The forms to register an action are aimed at saving information that can be consulted
later. For this reason, filling it out correctly is important from the beginning, since any
information omitted may be required later.

The forms to report results are those that are used to show figures or analysis of
processes that are standardized.

Depending on their preparation they can be:

- Manuals

- Semi-mechanized

- Machining

Manual forms are formats that are filled out completely manually, that is, the machine
element is not involved in their preparation.
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Semi-mechanized forms are carried out partly manually and partly through a machine
element such as a computer or typewriter.

Mechanized forms are those that are prepared entirely by a computer, both the data
and the fields to be filled out.

FORM DESIGN:

Every form must follow a series of basic principles for its design; these principles must
take into account the aspects of functionality and efficiency of the procedures involved.
Every form must comply with at least the following principles:

- Ease for its filling

- Reduction of the possibilities of error

- Esthetic

- Reduction of costs

FORMS USED BY THE COMPANY:

Below we will detail the different forms used by the Company to gather, classify and
summarize the information necessary to manage accounting, these forms are detailed
as follows:

1 .- Checks : It is a form used to pay people or institutions that are owed some good or
type of service.

2 .- Petty Cash Receipt : This is a form used to leave evidence of all payments made
by the petty cash fund.

3 .- Income Receipt: This is a form used to leave evidence of all money received from
clients.

4 .- Deposit: It is a form used for the purpose of recording the deposits made in the
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Banco Popular Dominicano.

5 .- Card Deposit: It is a form used for the purpose of recording card deposits made at
Banco Popular Dominicano.

6 .- Credit invoice: It is a form used for the purpose of recording wholesale and retail
credit sales.

7 .- Income Receipt: This is a form used for the purpose of having control over the
daily income that the Company has.

8 .- Credit Note : This form is basically used to record the discounts and refunds
granted.

9 .- Purchase Order: This form is used for the purpose of making certain purchases

INTERNAL CONTROL.

DEFINITION.

Internal Control can be defined as a set of procedures, policies, guidelines and

organizational plans which aim to ensure efficiency, security and order in the financial,
accounting and administrative management of the company (safeguarding of assets,
fidelity of the information and records, compliance with defined policies).

It is important to note that this definition of Internal Control not only covers the financial
and accounting environment but also controls whose goal is operational efficiency
within the business organization. (Aguirre Ormaechea, 2005:189)

Internal Control contributes to the security of the Accounting System that a company
has by establishing and evaluating the administrative, accounting and financial
procedures that help the company achieve its objectives.

Internal Control provides reasonable assurance that operations will be carried out in
accordance with the provisions of the company's manuals.
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OBJECTIVES OF THE CONTROL SYSTEM:

• Authorization of transactions.
• Adequate registration, classification and imputation of the accounting period of
the transactions.
• Systems verification.
• Obtaining accurate and reliable information.
• Adequate segregation of duties. Safeguarding and physical custody of assets
and records. Operating in accordance with the policies established by the entity.
(Aguirre Ormaechea, 2005:208)

The objectives established by Internal Control are the goals that have been proposed
as a system that will help the company to conduct itself appropriately. The achievement
of these objectives will depend on the staff and management since they are
responsible for the operation of a business. Each of these objectives will be reflected in
the financial information revealed by the entity.

IMPORTANCE.

An Internal Control System is important because it is not limited only to the reliability in
the manifestation of the figures that are reflected in the Financial Statements, but also
evaluates the level of operational effectiveness in accounting and administrative
processes. (Catacora Carpio, 1997:238)

Internal Control is very important in companies because its use covers all established
departments and not only the accounting area, but also evaluates the performance of
the company's collaborators, which will be reflected in the accounting information
presented. at the end of the period and that provides reasonable assurance that
operations were carried out in accordance with established policies.

TYPES OF CONTROLS.

Internal Control in a broad sense, includes controls that can be administrative and
accounting.

Accounting Control: includes the organizational plan and all methods and procedures
that mainly have to do with and are directly related to the protection of Assets and the
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reliability of financial records.

Administrative Controls: includes the organizational plan and all methods and
procedures that are primarily related to the efficiency of operations, adherence to
management policies, and usually only indirectly related to financial records. (Narváez
Sánchez, 2003:34)

For a better understanding of Internal Control, it is divided into Internal Accounting

Control, which refers to the set of standards that are established so that the recording
of accounting operations is correct and therefore said records are reliable; and Internal
Administrative Control, which is comprised of the set of standards and procedures
aimed at achieving the efficiency of collaborators in the performance of the company's
operations.

STRUCTURE.

The set of plans, methods, procedures and other measures, including the attitude of an
entity's management to offer a climate of trust that ensures the adequate flow of
information among employees, is called the Internal Control structure. (Narváez
Sánchez & Narváez Ruiz, 2007:235)

Internal Control must have a structure that provides reasonable confidence that
operations have been carried out under a control scheme that reduces the probability
of errors, therefore all policies established must be complied with for said structure to
be effective. at all levels of the organization.

METHODS TO EVALUATE INTERNAL CONTROL.

Generally, there are three methods used to record an Internal Control review and they
are as follows:

> Narrative: A narrative is a written description of the client's Internal Control

structure. An adequate narrative of an accounting system and related control
processes includes: 1. The origin of each document and record in the system. 2.
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How all the processing is carried out. 3. The layout of each document and
record in the system. 4. An indication of the control procedures relevant to the
assessment of control risk.
> Flow Chart: An Internal Control flow chart is a symbolic and diagrammatic
representation of client documents and their sequential flow in the company. A
well-prepared flowchart identifies inaccuracies and provides a clear
understanding of how the system operates.

> Internal Control Questionnaire: an Internal Control questionnaire asks a

series of questions regarding controls in each area as a means of indicating
aspects of internal control that may be inadequate. In most cases,
questionnaires require a “yes” or “no” response, where a “no” response
indicates potential Internal Control deficiencies (Arens & Others, 2007:285).

The evaluation of these methods allows the determination of the degree of Internal
Control and thus determines whether the personnel complies with the standards
established for each of the operations; It is also a tool for auditors that helps them
evaluate the company's Internal Control.

Sources consulted

http://prcticascontables.blogspot.com/2012/04/uso-de-los-formularios-de-la-
Empresa.html