ACCO 230 Chapter Notes - Chapter 7: Interest Expense, Market Liquidity, Debit Card
17 Feb 2015
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Document Summary
Fraud: is an intentional act to misappropriate (steal) assets or misstate financial statements. Sarbanes-oxley act (sox), which requires public companies to maintain adequate systems of internal controls and to have senior company officers sign certifications to that effect. Information and communication: must capture and communicate all pertinent information both down and up the company and to external parties: monitoring: internal control system must be monitored periodically. These form the backbone of a company"s efforts to address the risks it faces: authorization of transaction and activities, segregation of duties, documentation, physical controls. Independent checks of performance: human resource controls, authorization of transaction and activities. Only one person is authorized to perform a specific task. Establishing responsibility is easier when there is a system for proper authorization. Personal access system: where employees have their own access codes. Important policies should be established by the right individual or department: segregation of duties.
