Ch7+Note+Posting - Chapter 7 Internal Control Cash Internal...

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Internal Control What? Why? An internal control system is all policies and procedures used to: 1. Protect assets, 2. Ensure reliable accounting, 3. Promote efficient operations, and 4. Encourage adherence to company policies. At the organizational level , internal control objectives relate to the reliability of financial reporting , timely feedback on the achievement of operational or strategic goals, and compliance with laws and regulations . At the specific transaction level , internal control refers to the actions taken to achieve a specific objective (e.g., how to ensure the organization's payments to third parties are for valid services rendered.) Internal control procedures reduce process variation, leading to more predictable outcomes. Who? Internal Controls are established by the company’s board of directors, management and other personnel Everyone is responsible for Internal Controls How? 1.
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Ch7+Note+Posting - Chapter 7 Internal Control Cash Internal...

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