CHAPTER_7 (1)

CHAPTER_7 (1) - CHAPTER 7 Internal edit Master Cash Click...

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Click to edit Master subtitle style CHAPTER 7 Internal Control and Cash
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Examples of Theft Movie theater manager selling tickets twice Person taking tickets should be different than the person selling them Returned tax refunds deposited by employee All incoming checks should be logged Payments made to wife Purchasing agent should not have access to set up new accounts
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Internal Controls All related methods and measures adopted within a business to: Safeguard its assets Enhance the accuracy and reliability of its accounting records All publicly traded companies are required by SOX to have adequate internal controls Vary based on the size and nature of the company
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Sarbanes-Oxley Act of 2002 Companies must adopt strong controls and insure they remain adequate Independent auditors must attest to their adequacy Some agree it gives investors confidence in the accounting records Some argue the cost outweighs the benefit
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Principles of Internal Control
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Establishment of Responsibility Tasks should be assigned to one person Written policies should govern Each cashier is responsible for their own cash drawer Staff accountant is responsible for monthly journal entries
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This note was uploaded on 04/20/2011 for the course ACCT 218 taught by Professor Jansen during the Spring '11 term at Saint Louis.

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CHAPTER_7 (1) - CHAPTER 7 Internal edit Master Cash Click...

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