Chapter 4: Cash and Internal Control Summary

Chapter 4-Cash and Internal Control

Fraud-Reason for Internal Control

Frand: intentional act committed assets to
misappropriate
to or

misstate financial statements.

->
cause millions of $ lost in revenue for businesses.


In Us," SOX"a fraud to
prevention action, requires public companies
maintain
proper
and
adequate internal control system.
-
Executive responsible for Sinancial
reporting.

Government
regulations against fraud
·


has



Frand Triangle

lack of

I
promotion
·

pay increase

in
position or




~
circumstance
to commit fraud

personel or I
financial issues

, Purpose of Internal Control

Top Management in business
delegates authority &
responsibility
a



to other &
managers employees _




To business activities recorded the
melee sure are
properly
in
accounting
system management impairments procedures
, that are called internet
CICS)
control
system .




ICS Thet the
assure
company
's
objective being met in
are :
areas




effectiveness
(Honest)
(Productive) ① +
efficiency of operations
②
Reliability of internet & external
reporting
C.Moral Lawful) ③ Follow laws & internet
regulations policies
+
, .