ACCT 201 Chapter : Chapter+4+
15 Mar 2019
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An organizational plan designed to: safeguard assets, encourage adherence to company policies, ensure accurate and reliable accounting records, promote operational efficiency, characteristics of effective internal. 1. competent, reliable, and ethical personnel: attract top quality employees, train them well, rotate them when needed. 2. assignment of responsibilities. a. each duty is defined and assigned to an individual who is given the responsibility of carrying out the task. 3. proper authorization: written set of procedures, deviation from procedures performed only if authorized. 4. separation of duties: limits chances for fraud b. promotes accuracy of the accounting records, separate, operations from accounting, custody of assets from accounting, authorization of transactions from custody of related assets, duties within the accounting function. 6. pre numbering of documents and records. a. gap in sequence calls attention to a missing document or record: electronic and other controls: Some examples of these include: encryption devices. , firewalls.
