ACCT 2101 Lecture Notes - Lecture 6: Public Company Accounting Oversight Board, Internal Control, Bank Reconciliation
184 views7 pages
25 Sep 2017
School
Department
Course
Professor
Document Summary
Cash and internal controls | chapter 6 lecutre. Sarbanes-oxley act (sox: act passed by congress in 2002 to curb corporate fraud, applies to public corporations, requires corporations to maintain a system of internal controls, management must take responsibility for reliability and effectiveness of internal control. Independent auditors must attest the effectiveness of the internal control structure: a public company accounting oversight board (pcaob) oversees the work of auditors. Policies and procedures managers use to: protect assets, ensure reliable accounting, promote efficient operations, urge adherence to company policies. Principles of internal control: establish responsibilities, maintain adequate records, insure assets and bond key employees, separate recordkeeping from custody of assets, divide responsibility for related transactions, apply technological controls, perform regular and independent reviews. Limitations of internal controls: human error: negligence, fatigue, misjudgment, confusion, human fraud: intent to defeat for personal gain, cost vs.
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers