ACC 290 Week 5 Summary
ACC 290 Week 5 Summary
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This 1 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 19 views.
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Date Created: 11/13/15
Summary Week 5 Summary In our discussion of internal controls and the control environment I learned that policies and procedures are put into place by an organization to protect not only the organization from dishonesty but to protect the employee. The most effective control that I learned was the separation of duties. The separation of duties control establishes the requirements that are required for a process such as, no one person can handle consecutive duties that are related to one activity. An example of this would be an employee orders departmental supplies, the order is then sent to a supervisor for approval, once approved the order then goes to finance for account codes, and finally the order is placed through procurement. Having all these steps involved is for the benefit of securing assets. Each person involved in the activity of this order is assuring that the supplies were legitimate, approved by management, and financially acceptable. Another example of separation of duties is and employee travel reimbursement. The employee turns over their reimbursable travel receipts to their manager who signs off on the reimbursement as an approved activity. The manager then forwards the reimbursement to the accountant who creates the reimbursement voucher and attaches the signed documentation to the voucher. The voucher then goes through to the accounting system for approval and finally payroll produces the reimbursement into the employee’s checking account. In each of these examples there are controls in place that prevent someone from having complete control without having to get approval. These types of control environments help achieve the requirements of the SarbanesOxley Act of 2002. References Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons.
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