会计学原理PPTChap008.ppt

Conceptual Learning Objectives C1: Define internal control and identify its purpose and principles. C2: Define cash and cash equivalents and explain how to report them. Procedural Learning Objectives P1: Apply internal control to cash receipts and disbursements. P2: Explain and record petty cash fund transactions. P3: Prepare a bank reconciliation. Bank Reconciliation P3 We follow nine steps in preparing the bank reconciliation. Cash Balance per Book + Collections Interest - Uncollectible items +/- Errors Adjusted Cash Balance Bank Reconciliation P3 We follow nine steps in preparing the bank reconciliation. Adjusting entries are recorded for the reconciling items on the book side of the reconciliation. Bank Reconciliation P3 Only the items reconciling the book balance require adjustment. Global View Control of Cash Accounting definitions for cash are similar for U.S. GAAP and IFRS. Banking Activities as Controls There is a global demand for banking services, bank statements, and bank reconciliations. To the extent feasible, companies utilize banking services as part of their effective control procedures. Internal Control Purposes, Principles, and Procedures The purposes and principles of internal control systems are fundamentally the same across the globe. End of Chapter 8 8 - * 8 - * Copyright ? 2013 by The McGraw-Hill Companies, Inc. All rights reserved. 8 - * Cash and Internal Controls Chapter 8 Internal Control System Policies and procedures managers use to: Protect assets. Ensure reliable accounting. C1 Sarbanes-Oxley Act (SOX) The Sarbanes-Oxley Act requires managers and auditors of public companies to document and certify the system of internal controls. C1 Section 404 of SOX requires that managers document and assess the effectiveness of all internal control processes that can impact financial reporting. Sen. Paul Sarbanes (D-MD) Rep. Mike Oxley (R-OH) Principles of Internal Control Internal control principles common to all companies: Estab