ACCT 201 Lecture Notes - Lecture 4: Debit Card, General Ledger, Savings Account
Document Summary
Discuss the impact of accounting scandals & the passage of the sarbanes-oxley act. Identify the components, responsibilities, & limitations of internal control. Understand controls over cash receipts & cash disbursements. Identify the major inflows & outflows of cash. 8: (analysis) assess cash holdings by comparing cash to noncash assets. Errors - accidental errors in recording transactions or applying accounting principles. Fraud - a person intentionally deceives another person for personal gain or to damage that person: occupational fraud: the use of one"s occupation for personal enrichment through the deliberate misuse or misapplication of the employer"s resources. Opportunity - the situation allows the fraud to occur. Motivation - someone feels the need to commit fraud, such as the need for money. Rationalization - justification for the deceptive act by the one committing the fraud. Attempt to eliminate the opportunity element of fraud. 2. safeguard the company"s assets improve the accuracy & reliability of accounting information.
