Ch5 - Sarbanes-Oxley, Internal Controls and Cash Accounting...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Sarbanes-Oxley, Internal Controls and Cash Accounting 200 Chapter 5
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Internal Controls: Policies and procedures a business puts in place to accomplish the following objectives 1. Protect Assets: Physically and otherwise safeguard all assets. Ensure that all assets are used for business purposes. 2. Assure that Business Information is accurate. 3. Assure that employees comply with Laws and Regulations.
Background image of page 2
Management achieves these objectives by designing and applying the five elements of internal control appropriately: 1. Control e nvironment : is the overall attitudes of management and employees concerning internal controls. It includes: Respect Competency Honesty
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. R isk Assessment: Does the business face lots of risks including… competition, customer and employee theft, increased governmental regulation? These must be identified. Then, internal control procedures must be put in place to minimize these risks. –performance based bonus executives in banking industry. 3. C ontrol Procedures: are established to minimize risk and ensure that business goals (including the prevention of fraud) will be achieved. Hire competent personnel, separate related duties or operations, implementing proofs and security measures, mandate vacations for all employees.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/09/2011 for the course ACCT 200 taught by Professor Valades during the Spring '11 term at University of Tennessee.

Page1 / 12

Ch5 - Sarbanes-Oxley, Internal Controls and Cash Accounting...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online