Exam2 - Study Guide

Exam2 - Study Guide - ounting Records) = Reconciling s...

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counting Records) = Reconciling es (STI) = Market Value Method Goals of Internal Controls: - Safeguarding assets o Otherwise, you’re throwing away resources Encouraging adherence to company policies o Everyone works towards the same goal o Company treats everyone fairly - Promoting operational efficiency o Eliminate waste and increase your profits - Ensuring accurate and reliable accounting records o Can tell which part of the business is profitable/ needs improvement - Comply with legal requirements o Sarbanes-Oxley Act Internal Control Procedures: - Competent, reliable, and ethical personnel o Furthermore, should treat employees well - Assignment of duties o Specific positions in charge of specific functions o Creates accountability because you know what they’re doing - Separation of duties o Separate: operations (production; sales) and accounting asset custody (cash handling) and accounting - Proper use and design of documents o Pre-numbered, easy to understand
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Exam2 - Study Guide - ounting Records) = Reconciling s...

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