成都理工大学会计英语8.pptx

ACCOUNTING 会计英语 主讲教师：朱靖;Chapter 8;Define internal control. Identify the principles of internal control. Explain the applications of internal control principles to cash receipts. Explain the applications of internal control principles to cash disbursements. Describe the operation of a petty cash fund. Indicate the control features of a bank account. Prepare a bank reconciliation. Explain the reporting of cash.;Internal Control;Methods and measures adopted to: Safeguard assets. Enhance accuracy and reliability of accounting records. Reduce risk of: Errors (unintentional) Irregularities (intentional);Companies must develop principles of control over financial reporting. continually verify that controls are working. ;Measures vary with size and nature of the business. management’s control philosophy.;ESTABLISHMENT OF RESPONSIBILITY Control is most effective when only one person is responsible for a given task.;Internal Control;Internal Control;Internal Control;Q8-8. The management of Sewell Company asks you, as the company accountant, to explain (a) the concept of reasonable assurance in internal control and (b) the importance of the human factor in internal control. See notes page for discussion;(a) The concept of reasonable assurance rests on the premise that the costs of establishing control procedures should not exceed their expected benefit. (b) The human element is an important factor in a system of internal control. A good system can become ineffective through employee fatigue, carelessness, or in difference. Moreover, internal control may become ineffective as a result of collusion. ;Cash Controls;Q8-3. At the corner grocery store, all sales clerks make change out of one cash register drawer. Is this a violation of internal control? Why? ;Cash Controls;Cashier ring up sales Supervisor reads register totals makes cash counts prepares cash count sheets;Mail Receipts;Permitting only designated personnel to handle cash receipts is an applica