ACTG 2200 Chapter Notes - Chapter 4: Accounting Reform, Risk Assessment, Investor

• School: University of Denver
• Department: Accounting
• Course: ACTG 2200
• Professor: Hallam Andrew

Document Summary

Internal controls: occupational fraud: use of ones occupation for personal enrichment through the deliberate misuse of misapplication of the employer"s resources, accounting scandals and response by congress. Sarbanes-oxely act: known as public company accounting reform and investor protection act of 2002/ the act established a variety of guidelines relate dot auditor-client relations and internal control procedures. Framework for internal controls: internal control is a company"s plan to: Improve the accuracy and reliability or accounting information. Top executives must take final responsibility for their establishment and success: limitations of internal controls. Collusion: two or more people acting in coordination to circumvent internal controls. Top level employees who have the ability to override internal control features also have the opportunity to commit fraud. Effective internal controls and ethical employees alone cannot ensure a company"s success, or even survival. Cash equivalents: short term investment that have a maturity date no longer than.