ACCTG 230 Chapter Notes - Chapter 04: Cash Cash, Internal Control, Bank Reconciliation
Document Summary
Occupational fraud = the use of your occupation for personal gain/enrichment through misuse of resources and/or nancial aid statement manipulation. Fraud triangle (1 of 3 must be eliminated) > Sox act 2002 applies to companies required to le w/ sec. Internal controls safeguard assets and improve accuracy of acctg. information. The quality of internal controls = the quality of nancial acctg. Coso is the framework for designing internal controls (quality) Monitoring = the continual monitoring and reporting of de ciencies. Control activities = the policies that ensure manager"s directives are being carried out. Risk assessment = identify and analyze internal and external risks. Control environment = the overall ethical tone of the company. I. e. ) separation of duties, physical controls, paper authorization, employee management and e-commerce controls. Detective = detect error/fraud that has already occurred. Everyone has an impact on operation and effectiveness of internal controls but only the top executives are held responsible for establishment and success.
