ADMS 2500 Chapter Notes -Entrust, Fiduciary, Internal Control

• School: York University
• Department: Administrative Studies
• Course: ADMS 2500
• Professor: Brian Gaber

Document Summary

Businesses depend on accounting systems to convert transactions into useful data that can be used to manage the organization: Accounting system: (1) captures and records transactions (2) sorts, analyzes and summarizes transactions (3) updates accounting records (4) produces reports (5) responds to non-routine information requests from users. Financial statement is only as reliable as the systems producing them. Use manual procedures, technology, documents, online forms, filing systems, database systems and accounting methods to facilitate preparation of financial statement and for permanent records of transactions. Each organization is unique because they experience different needs, risks and resources. Heart of accounting system is database that has transactional data. Accounting systems are developed and operate within the control environment of a business. Depends on control environment and other procedures that help detect and/or prevent errors. Effective control is important and directly related to one of the basic functions of management: the fiduciary stewardship of resources entrusted to the organization.