ACCT 200 Lecture Notes - Lecture 12: Accounting Scandals, Internal Control

• School: University of Arizona
• Department: Accounting
• Course: ACCT 200
• Professor: All

Document Summary

Sarbanes-oxley act was initiated because of numerous corporate scandals enron, worldocm etc. ) The goal is to orient more corporate accounting scandals. Required to maintain a system of internal control. Internal control: methods and measures adopted to safeguard assets, enhance accuracy and reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations. Questions about the principles of internal controls activities. 1. establishment of responsibility one person is responsible for only one task. 2. segregation of duties different individuals responsible for related activities. 4. physical controls protect valuables in a safe etc. 5. indepeandt internal verification someone independent verifying information. 6. human resources controls bond employees (make them like eachother), make people take vacations etc. Limitations of internal control cost should not exceed benefit, consider the size of business. Read something then apply these principles same type of thing on the exam.