财务会计英文版 07 PPT.pdfVIP

华中科技大学管理学院 Internal Control, Managing Cash, and Making Ethical Judgments Chapter 7 Accounting, 5/E GUOWEI HUST 7 - 1 华中科技大学管理学院 Objective 1 Define internal control. Accounting, 5/E GUOWEI HUST 7 - 2 华中科技大学管理学院 Internal Control  What is internal control?  It is the organizational plan and all the related measures that an entity adopts to… – safeguard assets, – encourage adherence to company policies, – promote operational efficiency, and... – ensure accurate and reliable accounting records. Accounting, 5/E GUOWEI HUST 7 - 3 华中科技大学管理学院 Internal Control Operational Controls Financial Reporting Controls Accounting, 5/E GUOWEI HUST 7 - 4 华中科技大学管理学院 Objective 2 Identify the characteristics of an effective system of internal control. Accounting, 5/E GUOWEI HUST 7 - 5 华中科技大学管理学院 Establishing an Effective System of Internal Control  Characteristics of an effective internal control system include: 1 Competent, reliable, and ethical personnel 2 Assignment of responsibilities 3 Proper authorization 4 Separation of duties Accounting, 5/E GUOWEI HUST 7 - 6 华中科技大学管理学院 Separation of Duties Separation of operations from accounting Separation of the custody of assets from accounting Separation of the authorization of transactions from the custody of related assets