ACCTG 102 Lecture Notes - Lecture 2: Sarbanes–Oxley Act, Internal Control, Finished Good
Document Summary
Organizational charts companies prepare to show the interrelationships of activities and the delegation of authority and responsibility within the company. Stockholders own the corporation and elect the board of directors. Board of directors formulates operating policies and selects officers. Chief executive officer overall responsibility for managing the business. Chief financial officer (cfo) responsible for all accounting and finance issues. Controller maintains accounting records: line positions: directly involved in the revenue-generating operating activities, staff positions: are involved in supporting the efforts of the line. Prepares f/s, tax returns and internal reports. Treasurer has custody of funds and maintains cash position. Internal audit staff review the reliability and integrity of the financial information provided by the controller and treasurer. They also make sure control systems are functioning properly. Business ethics: all employees must act ethically, an increasing number of businesses provide codes of business ethics for their employees. Despite this corporate fraud is on the rise.
