ACC E113 Lecture Notes - Lecture 4: Bank Reconciliation, Internal Control, List Of The Shield Episodes
Document Summary
Factors affecting control environment: overall integrity and ethical values of personnel, management"s philosophy and operating style, assignment of authority and responsibility, general structure of an organization. One of the most important is the overall integrity and ethical values of personnel. Other factors include management"s philosophy and operating style, the assignment of authority and responsibility, and the general structure of an organization. Each of these factors contributes to the overall corporate culture within which internal control operates. Without a sound control environment, the remaining elements of internal control suffer. Identification and analysis of the risks that threaten the achievement of organizational objectives. " #1 goal2 identify them; effectively manage risk. " examples: external and internal risks2 competition; catastrophe; financial errors. " assess the likelihood of the risk occurring. " consider what actions should be taken to manage risk. " the policies and procedures established to address the risks that threaten the achievement of organizational objectives.
