MGT 11A Chapter Notes - Chapter 6: Public Company Accounting Oversight Board, Internal Control, Cash Cash
Document Summary
Chapter 6: reporting and analyzing cash, fraud, and internal control. Sarbanes-oxley act (sox) requires managers and auditors of public companies to document and verify internal controls. Auditors" work is overseen by public company accounting oversight board (pcaob) Committee of sponsoring organizations (coso): lists 5 ingredients of internal control. Control environment: company structure, ethics, and integrity for internal control. Risk assessment: identify, analyze, and manage risk factors. Control activities: policies and procedures to reduce risk of loss. Monitoring: regular review of internal control effectiveness. Information and communication: reports to internal and external parties. Principles of internal control are applied to all companies to: Establish responsibilities: assign to one person so know where the problem occured. Maintain adequate records: helps protect assets and managers monitor company activities. To employees handling lots of cash and easily transferable assets. Person controlling or has access to an asset must not have access to that asset"s accounting records.
