中山大学：《基础会计学》（英文版）Lesson 12 Internal Control and Business Ethnics

m中山大學管捏學院 经m00 BUSINESS SUN YAT-SEN UNIVERSIT Lesson 12 Internal control and Business ethnics ask team of TJADAWIEAMALACOJANAVA School of Business. Sun Yat-sen Universit

Lesson 12 Internal Control and Business Ethnics Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University

Outline Q The Fundamental Principles of Internal Control Internal Control to Cash Q Explain and record Petty Cash Fund Transactions. Q Prepare a bank Reconciliation Exploring the Concept of accounting ethics Q Accounting Ethics and Social Responsibilities Q Accounting Ethics and Decision Making Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

2 Outline ⧫ The Fundamental Principles of Internal Control ⧫ Internal Control to Cash ⧫ Explain and Record Petty Cash Fund Transactions. ⧫ Prepare a Bank Reconciliation ⧫ Exploring the Concept of Accounting Ethics ⧫ Accounting Ethics and Social Responsibilities ⧫ Accounting Ethics and Decision Making

Opening Story ◆ The failure of firms and Internal control D Enron n Worldcom D CAO Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 3

3 Opening Story ⧫The Failure of Firms and Internal Control  Enron  Worldcom  CAO

Opening Story ◆ China aviation oil (Singapore) Corp , an overseas arm of China's main jet-fuel supplier, revealed the end of 2004 OsT TRANSPARENT that it has racked up about COMPAHY AWARD 2002 WINNER S550 million in trading Ou Luton w s (upest related losses Ranked 29th most transparent company Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

4 Opening Story ⧫China Aviation Oil (Singapore) Corp., an overseas arm of China's main jet-fuel supplier, revealed the end of 2004 that it has racked up about $550 million in trading￾related losses. Ranked 29th most transparent company

Today's organizations are concerned abouth ◆ Risk Management ◆ Governance ◆ Control Q ASsurance(and Consulting Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 5

5 Today’s organizations are concerned about: ⧫Risk Management ⧫Governance ⧫Control ⧫Assurance (and Consulting)

Internal control ◆ Internal Check ◆ Internal control C Internal Control Structure Q Internal Control----Integrated Framework ◆ERM Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

6 Internal Control ⧫Internal Check ⧫Internal Control ⧫Internal Control Structure ⧫Internal Control-----Integrated Framework ⧫ERM

Internal control What is internal control? Q It is the organizational plan and all the related measures that an entity adopts to. n safeguard assets, n encourage adherence to company policies, n promote operational efficiency, and.. n ensure accurate and reliable accounting records. Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7

7 Internal Control ⧫What is internal control? ⧫It is the organizational plan and all the related measures that an entity adopts to…  safeguard assets,  encourage adherence to company policies,  promote operational efficiency, and...  ensure accurate and reliable accounting records

=。c System of Internal eRtEl Characteristics of an effective internal control system include: n Competent, reliable, and ethical personnel n Assignment of responsibilities n Proper authorization n Separation of duties Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

8 Establishing an Effective System of Internal Control ⧫Characteristics of an effective internal control system include:  Competent, reliable, and ethical personnel  Assignment of responsibilities  Proper authorization  Separation of duties

Separation of Duties Separation of operations from accounting Separation of the custody of assets from accounting Separation of the authorization of transactions from the custody of related assets Separation of duties within the accounting function Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

9 Separation of Duties Separation of operations from accounting Separation of the custody of assets from accounting Separation of the authorization of transactions from the custody of related assets Separation of duties within the accounting function

Internal controls for e-Commerce Stolen credit card numbers Computer virus and Trojan horses Impersonation of companies Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity

10 Internal Controls for e-Commerce Stolen credit card numbers Computer virus and Trojan horses Impersonation of companies