Chapter 7 - Chapter7: Chapter7: InternalControlandCash...

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

View Full Document Right Arrow Icon
Chapter 7:  Chapter 7:  Internal Control and Cash Internal Control and Cash
Background image of page 1

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

View Full DocumentRight Arrow Icon
Internal Control Internal Control        Internal control  – protects a company’s assets  from employee theft, robbery, and other  misuse.        Also reduces risk of errors  and irregularities  in  the accounting process.
Background image of page 2
Principles of Internal Control Principles of Internal Control Establishment of Responsibility  – It is easier  for employees to perform their tasks if they are  in black and white Segregation of Duties  – provides basis for  evaluating each employee’s work on a stand- alone basis        1.  Related activities should be given to different  people (such as:)
Background image of page 3

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

View Full DocumentRight Arrow Icon
      Related purchasing activities (ordering, receiving,  payment)    Related sales activities ( selling, billing, shipping )      2.   Record keeping vs. Physical Custody –  accountants should not have unsupervised access to  the records.  
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 06/08/2011 for the course ECON 1006 taught by Professor Pow during the Fall '11 term at CUNY Baruch.

Page1 / 12

Chapter 7 - Chapter7: Chapter7: InternalControlandCash...

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