RSM219H1 Lecture Notes - Debit Card, Child Custody, Bank Reconciliation

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Alexander Edwards

Document Summary

1. 1 fraud is an intentional to misappropriate (steal) assets or misstate financial statements: many high-profile collapses of companies due to fraud, examples of misstatements: 1. 2 internal control: consists of all the related methods and measures adopted within a company to help it to achieve reliable financial reporting, effective and efficient operation, and compliance with relevant laws and regulation. Significant deficiency must the reported to management and the board of directors. 1. 3 the importance of internal control is recognized by the canadian business corporations. 2. 1 authorization of transactions and activities: transactions and activities must be undertaken, and approved, by the appropriate individuals or departments. Control is most effective when only one person is responsible for a given task, (i. e. , cash drawer assignment). 2. 2 segregation of duties: the work of one employee should, without a duplication of effort, provide a reliable basis for evaluating the work of another employee.