ACC 3202 Lecture Notes - Lecture 4: Internal Control, Purchase Order, Financial Statement

• School: Baruch College
• Department: Accountancy
• Course: ACC 3202
• Professor: Ketki Mehta

Document Summary

Early 2000"s companies had really big frauds- fraudulent financial reporting. Sarbanes and oxley ( two senators) req. Congress to better business regulations/ internal controls for betterment of investors. When top management models ethical behavior chances of fraud are reduced. Oversight of company and assets of company. Parents not just responsible for rules but to protect us and assets in house. Maintain accurate and complete ais systems (learning in class) How our parents put up ground rules. Fraud: theft, concealment, and conversion to personal gain of another"s money, physical assets or information. Fraudulent financial reporting (misstatement of financial records) Nature of management fraud- fraudulent financial reporting. Provide refund only if proper sales receipt exists. Pay only those invoices that have a matching purchase order and receiving report and mark documents as paid or cancelled. Price goes up| increasing stock price| have incentive. Base salary + if you exceed revenue by % you will get ___ much more 8456 incentive^^^