BSB110 Lecture Notes - Lecture 7: Administrative Controls, Internal Control, Accounting
Document Summary
Principles of accounting information systems: cost effectiveness: Topic 7: cost versus benefits consideration, useful output, relevant, reliable, understandable, timely, comparable, flexibility, technological advances, increased competition, changing accounting principles, organisational growth, government regulation and deregulation. Planning and identifying information needs and sources. Creating forms, documents, procedures, job descriptions and reports. Installing the system, training personnel and making the system fully operational. Internal control is an essential part of risk management. It consists of all the processes used by management and staff to: Comply with laws, regulations and internal policies. Two aspects: administrative controls provide operational efficiency and adherence to policy, accounting controls are the methods and procedures used to protect assets and and procedures ensure that transactions are recorded appropriately. Large companies establish objectives which encompass the principles of the organisation. Management is responsible for developing practices and policies which are consistent with these objectives.
