《principles of accounting》chap4PPT课件.pptx

Internal Control and Cash
Chapter 4
Describe fraud and its impact
Learning Objective
LO 1
DESCRIBE FRAUD AND ITS IMPACT
Fraud
Intentional misrepresentation of facts
Causes injury or damage to another party
Increased with expansion of merce via the
mon types
Insurance fraud
Check forgery
Medicare fraud
Credit card fraud
Identity theft
LO 1
Misappropriation of Assets
Fraudulent Financial Reporting
Committed by employees
Theft of money or inventory
Bribery or kickback schemes
Overstate expense reimbursement
Committed by managers
False and misleading entries in the books
Deceives investors and creditors
mon types of fraud that impact financial statements
DESCRIBE FRAUD AND ITS IMPACT
LO 1
DESCRIBE FRAUD AND ITS IMPACT
Motive
Exhibit 4-1 | The Fraud Triangle
Opportunity
Rationalization
Fraud
is the ultimate unethical act in business!
Explain the objectives ponents of internal control
Learning Objective
LO 2
The Sarbanes-Oxley Act (SOX)
SOX Provisions
panies must
maintain a system of internal control
issue an internal control report
Auditors must evaluate and report on internal controls
Created pany Accounting Oversight Board
Limits non-audit services of auditing firms
Penalties for violators
Exhibit 4-3 | The Shield of Internal Control
LO 2
The Sarbanes-Oxley Act (SOX)
Internal Controls
Company Assets