Comparisons_and_compliance_monitoring - 1. Comparisons and...

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1. Comparisons and compliance monitoring No persons or department should be able to completely process a transaction from beginning to end without being cross checked by another person in the department One of the most effective tools for monitoring compliance with management policies is the use of operating budgets and cash budgets - A budget is a quantitative financial plan that helps control day to day management activities - Operating budgets are budgets of future periods of net income: They are prepared by line item of the income statement - Cash budgets are budgets of future periods cash receipts and cash disbursements : That are constantly being updated by adding a time period a year away while dropping the time period for data that are out of line with expectations. o Departments managers are required to explain the variances and to take corrective actions in their operating plans to keep the budgets in line with expectations this is called exception reporting An
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This note was uploaded on 08/31/2011 for the course ACG 2021 taught by Professor Hornik during the Summer '08 term at University of Central Florida.

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Comparisons_and_compliance_monitoring - 1. Comparisons and...

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