ACC 332 Chapter Notes - Chapter 7-1: Sarbanes–Oxley Act, Petty Cash, Internal Control
11 Feb 2019
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Document Summary
Lo7-1 de ne what is meant by internal control and describe some key elements of an internal control system for cash receipts and disbursements. The success of any business enterprise depends on an e ective system of internal control. Enhance reliability and accuracy of accounting data. Sarbanes- oxley act of 2002 section 404 requires that companies document their internal controls and asses their adequacy. Auditors must also express their opinion about internal control. Coso ( committee of sponsoring organizations) gives a framework for destining an internal control system. De nes internal control as a process undertaken by an entity"s board of directors, management and other personal. Separation of duties is critical to internal control. Employees involved in record keeping should not also have physical access to the assets. The cash receipts process is an example of separation of duties. Good internal control helps ensure accuracy as well as preventing theft or scandal.
