Kế toán doanh nghiệp - Chapter 6: Reporting and analyzing cash and internal controls
The Sarbanes-Oxley Act, also known as SOX, requires management and auditors of publicly held companies to adhere to or perform specific requirements, such as: Evaluation of internal controls. Auditor’s work is overseen by the Public Company Accounting Oversight Board (PCAOB). Restriction on consulting services performed by auditors. Term limits on person leading the audit. Harsh penalties for violators, including prison time with severe fines.
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Financial AccountingJohn J. WildSeventh Edition Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 6Reporting and Analyzing Cash and Internal ControlsThe Sarbanes-Oxley ActThe Sarbanes-Oxley Act, also known as SOX, requires management and auditors of publicly held companies to adhere to or perform specific requirements, such as:Evaluation of internal controls.Auditor’s work is overseen by the Public Company Accounting Oversight Board (PCAOB).Restriction on consulting services performed by auditors.Term limits on person leading the audit.Harsh penalties for violators, including prison time with severe fines. C16-*Principles of Internal ControlEstablish responsibilities.Maintain adequate records.Insure assets and bond key employees.Separate recordkeeping from custody of assets.Divide responsibility for related transactions.Apply technological controls.Perform regular and independent reviews.C16-*Control of Cash Receipts Over-the-Counter Cash ReceiptsCash register with locked-in record of transactions.Compare cash register record with cash reported.Cash Receipts by MailTwo people open the mail.Money to cashier’s office.List to accounting dept.Copy of list filed.P16-*Control of Cash DisbursementsAll expenditures should be made by check. The only exception is for small payments from petty cash.Separate authorization for check signing and recordkeeping duties.Use a voucher system.P16-*Bank Reconciliation A bank reconciliation is prepared regularly to explain the difference between cash reported on the bank statement and the cash balance on company’s books.Why are thebalances different?*P36-*Reconciling Items (How to account for debit and credit memoranda)Bank Statement BalanceAdd: Deposits in transit.Deduct: Outstanding ChecksAdd or Deduct: Bank errors.Book BalanceAdd: Collections made by the bank.Add: Interest earned on checking account.Deduct: Non-sufficient funds check (NSF).Deduct: Bank service charge.Add or Deduct: Book errors.P36-*Bank Reconciliation ExampleP36-*End of Chapter 66-*
