ACCT 2101 Lecture Notes - Lecture 4: Giro, Petty Cash, Bank Statement

• School: Temple University
• Department: Accounting
• Course: ACCT 2101
• Professor: Christian E.Wurst

Document Summary

Internal controls: these are a series or set of policies and procedures to safeguard assets and help insure the a(cid:272)(cid:272)ura(cid:272)y of a (cid:272)o(cid:373)pa(cid:374)y"s fi(cid:374)a(cid:374)(cid:272)ial state(cid:373)e(cid:374)ts. Lo4-1 discuss the impact of accounting scandals and the passage of the sarbanes-oxley act: key point: accounting scandals in the early 2000s prompted passage of the sarbanes- Sox sets create a variety of guidelines related to auditor-client relations and additional internal controls. Lo4-2 identify the components, responsibilities, and limitations of internal control: requires a separate report on internal controls, components of internal control, continual monitoring of internal activities and reporting of deficiencies is required. Monitoring includes formal procedures for reporting control deficiencies: control activities are the policies and procedures that help ensure that (cid:373)a(cid:374)age(cid:373)e(cid:374)t"s dire(cid:272)ti(cid:448)es are (cid:271)ei(cid:374)g (cid:272)arried out. Internal audits: external audits, limitations of internal control, a(cid:374) effe(cid:272)ti(cid:448)e i(cid:374)ter(cid:374)al (cid:272)o(cid:374)trol syste(cid:373) (cid:272)a(cid:374)"t tur(cid:374) a (cid:271)ad e(cid:373)ployee i(cid:374)to a good o(cid:374)e. Lo4-3 define cash & cash equivalents: components of the total cash balance.