MGMT 20000 Chapter Notes - Chapter 4: Internal Control, List Of The Shield Episodes, Bank Reconciliation
30 Jun 2016
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Can be issued for 2 reasons: errors. Accidental errors in recording transactions or applying accounting principles: fraud. A person intentionally deceives another person for personal giant or to damage that person. Use of one"s own occupation for person"s enrichment through the deliberate misuse or misapplication of the employer"s resources. Motive (or pressure: someone feels the need to commit fraud. Rationalization: justification for the deceptive act by the one committing fraud. Represent plans to: safeguard assets, improve accuracy and reliability of information. Managers entrusted with resources of both the company"s lenders and owners. Managers act as stewards or caretakers of the company"s assets. Some managers have shirked their ethical responsibilities: top execs misreported and fooled investors into overvaluing company"s stock. Also known as public company accounting reform and investor protection act of 2002. Applies to all companies that are required to file financial statements with the sec: publicly traded companies. Established guidelines on: internal control procedures, auditor-client relations.
