ACCT 203 Chapter Notes - Chapter 11: Internal Control, Financial Statement, Bank Reconciliation
ACCT 203 GMU Chapter 11 review
An internal control system consists of the policies and procedures managers use
to _____.
Ensure reliable accounting
protect assets
promote efficient operations
urge adherence to company policies
all the above
The principles of internal control include _____.
Establish Responsibilities
An effective system of internal control _____.
Help protect company assets
Segregation of duties _____.
divides responsibility for a transaction between two or more individuals
The Sarbanes-Oxley Act _____.
requires managers of public companies to document and assess the effectiveness
of all internal control processes that impact financial reporting
Name the cash management principles
Encourage collection of receivables
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
An internal control system consists of the policies and procedures managers use to _____. Ensure reliable accounting protect assets promote efficient operations urge adherence to company policies all the above. Segregation of duties _____. divides responsibility for a transaction between two or more individuals. The sarbanes-oxley act _____. requires managers of public companies to document and assess the effectiveness of all internal control processes that impact financial reporting. A bank does not issue a debit memorandum to notify a depositor of _____. a deposit to the depositor"s account. Identify the bank statement balance (balance per bank) Identify and add unrecorded deposits and bank errors understating the bank balance and add them to the bank balance. Identify and deduct outstanding checks and bank errors overstating the bank balance from the bank balance. Identify the company"s book balance (balance per book) Identify unrecorded credit memoranda, interest earned, and errors understating the book balance and add them to the book balance.