ACCT1501 Lecture Notes - Lecture 7: Petty Cash, List Of The Shield Episodes, Cash Cash
Document Summary
Internal control systems: control environment: includes policies and procedures of the organisation. The way in which management assigns authority and responsibility: risk assessment: this is to identify and analyse relevant risks that may impact the achievement of the organisation"s basic objectives. This forms the basis for how businesses will manage internal and external risks: control activities: these are policies and procedures that help to ensure management directives are carried out. They may be preventative or detective actions such as: Information processing: information and communication: important information must be captures and communicated in a timely fashion. Could include operational, financial and compliance related information. Vertical, external and horizontal communication is required, with a clear message from upper management: monitoring: internal control systems need to be monitored through ongoing monitoring activities and separate evaluations. Collusion among employees can result in control failures.
