财务会计英文版 07 PPT

7-1Accounting,5/EGUOWEIHUSTInternalControl,ManagingCash,andMakingEthicalJudgmentsChapter77-2Accounting,5/EGUOWEIHUSTDefineinternalcontrol.Objective17-3Accounting,5/EGUOWEIHUSTInternalControlWhatisinternalcontrol?Itistheorganizationalplanandalltherelatedmeasuresthatanentityadoptsto…–safeguardassets,–encourageadherencetocompanypolicies,–promoteoperationalefficiency,and...–ensureaccurateandreliableaccountingrecords.7-4Accounting,5/EGUOWEIHUSTOperationalControlsFinancialReportingControlsInternalControl7-5Accounting,5/EGUOWEIHUSTIdentifythecharacteristicsofaneffectivesystemofinternalcontrol.Objective27-6Accounting,5/EGUOWEIHUSTEstablishinganEffectiveSystemofInternalControlCharacteristicsofaneffectiveinternalcontrolsysteminclude:1Competent,reliable,andethicalpersonnel2Assignmentofresponsibilities3Properauthorization4Separationofduties7-7Accounting,5/EGUOWEIHUSTSeparationofoperationsfromaccountingSeparationofthecustodyofassetsfromaccountingSeparationoftheauthorizationoftransactionsfromthecustodyofrelatedassetsSeparationofdutieswithintheaccountingfunctionSeparationofDuties7-8Accounting,5/EGUOWEIHUSTStolencreditcardnumbersComputervirusandTrojanhorsesImpersonationofcompaniesInternalControlsfore-Commerce7-9Accounting,5/EGUOWEIHUSTInternalControlsfore-CommerceWhatisanencryption?Itistheprimarymethodofachievingconfidentialityine-commerce.Plain-textmessagesarerearrangedbysomemathematicalprocess.Theencryptedmessagecannotbereadbyanyonewhodoesnotknowtheprocess.7-10Accounting,5/EGUOWEIHUSTInternalControlsfore-CommerceTheInternetCorporateIntranetFirewallNetworkComputers7-11Accounting,5/EGUOWEIHUSTTheLimitationsofInternalControlMostinternalcontrolmeasurescanbecircumventedorovercome.Collusioniswhentwoormoreemployeesworkasateamwiththepurposetodefraudthefirm.7-12Accounting,5/EGUOWEIHUSTTheBankAccountasaControlDeviceDocumentsusedtocontrolabankaccountinclude:–signaturecard–depositticket–check–bankstatement–bankreconciliation7-13Accounting,5/EGUOWEIHUSTTheBankReconciliationWhataretworecordsofabusiness’scash?1Cashaccountinthebusiness’sowngeneralledger.2Thebankstatementwhichtellstheactualamountofcashthebusinesshasinthebank.7-14Accounting,5/EGUOWEIHUSTTheBankReconciliationItemsrecordedbyacompanynotonthebankstatement:–depositintransit–outstandingchecks7-15Accounting,5/EGUOWEIHUSTTheBankReconciliationItemsonabankstatementandnotrecordedbythebusiness:–bankcollections–bankfees–interestearnedonaccount–NSFchecks7-16Accounting,5/EGUOWEIHUSTThePathsThatTwoChecksTake(GoodCheck)Makerwriteschecktopayee.Payeedepositscheckinbank.Payee’sbanksendschecktomaker’sbank.Maker’sbankpaysthecheck.7-17Accounting,5/EGUOWEIHUSTThePathsThatTwoChecksTake(NFSCheck)Maker’sbankbalanceisnotsufficienttopaythecheck.Maker’sbanksendstheworthlesscheckbacktopayee’sbank.Payee’sbankdecreasespayee’sbalance.Payeeholdsworthlesscheck.7-18Accounting,5/EGUOWEIHUSTPrepareabankreconciliationandtherelatedjournalentries.Objective37-19Accounting,5/EGUOWEIHUSTTheBankReconciliationExampleAtthebeginningofJuly,Sahita,Inc.receivedtheJune’sbankstatement.Itindicatedthefollowing:Thebankbalancewas$63,275.ThebankhadcollectedanotereceivablefromoneofSahita’scustomersintheamountof$1,325.7-20Accounting,5/EGUOWEIHUSTTheBankReconciliationExampleThebankpaidtheelectricbillof$1,500.Therewasa$200checkreturnedforNSF.Interestearnedontheaccountwas$265.Bankservicechargeswere$12.7-21Accounting,5/EGUOWEIHUSTTheBankReconciliationExampleSahita’sbooksindicatesacashbalanceof$66,647.Adepositof$11,250wasmailedtothebankonJune30.ChecksissuedinJunefor$8,000havenotyetbeenpaidbythebank.7-22Accounting,5/EGUOWEIHUSTBalanceperbank,June30$63,275Adddepositintransit11,250$74,525Lessoutstandingcheck8,000Adjustedbankbalance$66,525TheBankReconciliationExample7-23Accounting,5/EGUOWEIHUSTBalanceperbooks,June30$66,647Add:Notereceivablecollectedbythebank1,325Interestincome265$68,237Less:Paymentofelectricbill1,500NSFcheck200Servicecharge12Adjustedbookbalance$66,525TheBankReconciliationExample7-24Accounting,5/EGUOWEIHUSTTheBankReconciliationExampleBalanceperbooks$66,525Balanceperbank$66,525Equalamounts7-25Accounting,5/EGUOWEIHUSTRecordReconcilingItemsJune30,200xCash1,325NotesReceivable1,325NotescollectedbythebankJune30,200xCash265InterestIncome265Interestearnedonbankbalance7-26Accounting,5/EGUOWEIHUSTRecordReconcilingItemsJune30,200xUtilitiesExpense1,500Cash1,500MonthlyelectricityexpenseJune30,200xAccountsReceivable–NSF200Cash200NSFcheckreturnedbybank7-27Accounting,5/EGUOWEIHUSTRecordReconcilingItemsJune30,200xBankServiceFees12Cash12Bankservicecharges7-28Accounting,5/EGUOWEIHUSTApplyinternalcontrolstocashreceipts.Objective47-29Accounting,5/EGUOWEIHUSTCashReceiptsOvertheCounterTheterminalshouldbepositionedsothatcustomerscanseetheamountthecashierentersintothecashregister.Thecashdrawershouldopenonlywhenthesalesclerkentersanamountonthekeypad.Therolloftapelockedinsidethemachinerecordseachsaleandcashtransaction.7-30Accounting,5/EGUOWEIHUSTCashReceiptsOvertheCounterPricingmerchandiseat“uneven”amountsmeansthattheclerkh