: ACC-211 CH 7 Notes
Document Summary
Chapter 7 acc-211 notes (lo 1) fraud and the principles of internal control: fraud, dishonest act by an employee that results in personal benefit to the employee at a cost to the employer. The fraud triangle refers to the three factors that contribute to fraudulent activity. Independent outside auditors must attest to the level of internal controls. Internal control consists of all of the related methods and measures adopted within an organization to: safeguard its assets, enhance the reliability of its accounting records, ensure compliance with laws and regulations. Internal control systems have five primary components: control environment, or tone at the top. , risk assessment, or identifying and analyzing factors that create risk, control activities, or policies and procedures to address risk. Related purchasing activities include ordering merchandise, receiving goods, and paying (or authorizing payment) for merchandise: related selling activities also should be assigned to different individuals.
