ACC 290 Week 5 DQ1
ACC 290 Week 5 DQ1
Popular in Course
verified elite notetaker
Popular in Department
This 0 page Study Guide was uploaded by kimwood Notetaker on Friday November 13, 2015. The Study Guide belongs to a course at a university taught by a professor in Fall. Since its upload, it has received 14 views.
Reviews for ACC 290 Week 5 DQ1
Report this Material
What is Karma?
Karma is the currency of StudySoup.
You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!
Date Created: 11/13/15
Week 5 D01 What is the control environment How does the control environment affect a company39s internal controls What are the negative and positive elements of a control environment What are two examples of strong and weak internal controls in organizations where you have worked or have rsthand knowledge The control environment is the basis of the entire control system that the organization is establishing The control environment is the value that is placed on integrity and the knowledge that unethical activity will not be tolerated It is management s responsibility to express behavior and attitude that enforces this ethical behavior The control environment affects the internal control by setting a basis of control activities that safeguard assets enhance accounting reliability increase efficiency of operations and compliance with laws and regulations The negative elements of a control environment are that strict adherence must be applied continuously Sometimes employees become overworked and underpaid and this is cause for concern because their level of carelessness goes up Other times people might become slack in their duties over time Some of the positive elements of a control environment are that responsibility does not lie on one person but many Each part of a process requires several people to handle it therefore offering little opportunity to do wrong Other positives are the process of that accountability is established and understood by each individual An example of a weak internal control I witnessed was in a friend s tanning bed business The friend worked during the day and outlined how she expected her teenage employee s to behave through policies and procedures To my friends face the employees were the picture of a model employee but when she left in the evenings to go home and let them finish out the night the trouble would begin The employees were letting all their friends tan for free selling them tanning products and pocketing the cash My friend finally put up a camera and goodness was she shocked at what was happening after she left for the evening A strong control system that I have knowledge of is the system where I presently work Our everyday policy is outlined in who does what no procedure is ever fully completed by just one person For example my student employees run the registers I prepare the deposit another person drops off the deposit and the final person reconciles the transactions If I were to do another procedure then I would not be allowed to do the one I am doing now It is just simply separation of duties so that one person does not hold all of the control or responsibility References Kimmel P D Weygandt J J amp Kieso D E 2011 Financial accounting Tools for business decision making 6th ed Hoboken NJ John Wiley amp Sons
Are you sure you want to buy this material for
You're already Subscribed!
Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'