TAILIEUCHUNG - Lecture Survey of Accounting (First edition): Chapter 5 – Kimmel, Weygandt

Chapter 5 - Fraud, internal control, and cash. The main goals of this chapter are to: Define fraud and internal control, identify the principles of internal control activities, explain the applications of internal control principles to cash receipts, explain the applications of internal control principles to cash disbursements. | Fraud, Internal Control, and Cash 5 Kimmel ● Weygandt Survey of Accounting, First Edition WILEY Apply internal control principles to cash. CHAPTER OUTLINE Define fraud and the principles of internal control. 1 2 LEARNING OBJECTIVES Identify the control features of a bank account. 3 Explain the reporting of cash and the basic principles of cash management. 4 Dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. Three factors that contribute to fraudulent activity. ILLUSTRATION 5-1 Fraud triangle FRAUD LEARNING OBJECTIVE Define fraud and the principles of internal control. 1 LO 1 Applies to publicly traded . corporations. Required to maintain a system of internal control. Corporate executives and boards of directors must ensure that these controls are reliable and effective. Independent outside auditors must attest to the adequacy of the internal control system. SOX created the Public Company Accounting Oversight Board (PCAOB). THE SARBANES-OXLEY ACT LO 1 Methods and measures adopted to: Safeguard assets. Enhance accuracy and reliability of accounting records. Increase efficiency of operations. Ensure compliance with laws and regulations. INTERNAL CONTROL LO 1 Review Question Internal control is used in a business to enhance the accuracy and reliability of its accounting records and to: safeguard its assets. prevent fraud. produce correct financial statements. deter employee dishonesty. LO 1 INTERNAL CONTROL Five Primary Components: Control environment. Risk assessment. Control activities. Information and communication. Monitoring. INTERNAL CONTROL LO 1 PEOPLE, PLANET, AND PROFIT INSIGHT And the Controls Are Internal controls are important for an effective financial reporting system. The same is true for sustainability reporting. An effective system of internal controls for sustainability reporting will help in the following ways: (1) prevent the unauthorized use of data; (2) provide reasonable assurance that the

• Kế toán - Kiểm toán
• Survey of Accounting
• Lecture Survey of Accounting
• Financial statements
• Internal control
• Establish responsibility centers
• Segregate employee duties
• Accounting for cash
• Accounting cycle
• Financial resources
• Accounting provides information
• Internal controls
• Accounting profession
• Accounting for receivables
• Inventory cost flow
• Accounting for liabilities
• Bonds issued
• Managerial accounting
• Product costing
• Ledger accounts
• Merchandising businesses
• Transportation costs
• Long term operational assets
• Depreciation method