About This Chapter
Internal Controls - Chapter Summary and Learning Objectives
Let our experienced and knowledgeable instructors show you some of the errors and fraudulent activity associated with the financial reporting process. You can also watch the video lessons to learn about the safeguards designed to prevent them and examine how they affect the accounting process. This chapter is designed to teach you the following:
- Purposes and limitations of an internal control system
- Control procedures used to manage cash and banking activities
- Types of auditors and their role in the control process
- Agencies and legislation regulating the accounting profession
|Typical Problems with Financial Information||Discusses common problems with financial information, such as errors in the reporting process, disagreements in judgment and fraudulent financial reporting.|
|Internal Controls in Accounting: Definition, Types & Examples||Defines internal control and identifies its purposes and principles.|
|Safeguards & Controls of Banking Activities||Explains the control environment and the various control procedures associated with banking activities.|
|Control of Cash: Definition & Methods||Defines cash, cash equivalents and liquidity. Illustrates how an effective internal control system protects these assets.|
|Control of Cash Receipts & Disbursements||Applies internal controls to cash receipts and disbursements.|
|Earnings Management: Definition, Techniques & Examples||Explains what earnings management is and the reasons these accounting techniques are employed.|
|What is Bank Reconciliation? - Definition, Purpose, Process & Examples||Outlines the objectives of bank reconciliations and the processes involved in preparing them.|
|Technology's Impact on the Internal Control System||Examines the impacts of technology on the internal control system, including the reduction of processing errors and a crucial separation of duties.|
|Limitations of Internal Control||Describes how internal control limitations are usually the result of either human error or the cost-benefit principle.|
|The Sarbanes-Oxley Act: Definition and Explanation||Discusses the Sarbanes-Oxley Act, the Public Company Accounting Oversight Board and the constraints placed on auditors and management.|
|The Role of Auditors in the Accounting Process||Profiles the roles of internal auditors and external auditors. Discusses audit procedures and the assumption of independence in the accounting process.|
|The Securities & Exchange Commission: Definition, History & Purpose||Details the purposes of the Securities and Exchange Commission.|
1. Typical Problems with Financial Information
The ultimate goal of an accounting professional is to provide accurate and reliable financial information to interested parties. In this lesson, we are going to discuss typical problems with financial information.
2. Internal Controls in Accounting: Definition, Types & Examples
Rules and regulations are a part of everything we do. In this lesson, you will learn about internal controls in accounting. You will learn what they are, why they are important and see examples.
3. Safeguards & Controls of Banking Activities
Money is one of the most highly valued items a person has. Is that money safe when it is deposited in a bank? In this lesson, you'll learn how banks safeguard your money so that you can be confident with every deposit you make.
4. Control of Cash: Definition & Methods
Cash is a valuable commodity and one that is vulnerable to fraudulent activity. In this lesson, you will learn what makes up a company's cash account as well as how to control cash.
5. Control of Cash Receipts & Disbursements
Cash is something that we all work hard for and certainly don't want to lose to predators. In this lesson, we will discuss cash and how to protect both the receipt and disbursement of cash.
6. Earnings Management: Definition, Techniques & Examples
Earnings management is a hot topic in the accounting world. In this lesson, you will learn what it is, what techniques are most popular and see examples of each.
7. What is Bank Reconciliation? - Definition, Purpose, Process & Examples
Ensuring that a company's cash account is in balance is a vital part of an accounting professional's job. In this lesson, you will learn about bank reconciliation.
8. Technology's Impact on the Internal Control System
Almost every day, you hear about new advances in technology. Do you ever wonder how this new technology affects the business world? In this lesson, we are going to discuss how technology impacts internal control.
9. Limitations of Internal Control in Financial Reporting
Internal controls are a vital part of the operation of a business. In this lesson, we will discuss what internal controls are and some of the limitations of internal controls.
10. The Sarbanes-Oxley Act: Definition and Explanation
Government regulations play a major role in corporate financial reporting. In this lesson, you will learn about one of the most important regulations enacted in the last two decades - the Sarbanes-Oxley Act.
11. The Role of Auditors in the Accounting Process
Auditors play a pivotal role in the accounting industry. In this lesson, you will learn what an auditor is, what they do, and the steps in the auditing process.
12. The Securities & Exchange Commission: Definition, History & Purpose
The accounting industry is regulated by several organizations. Each of these were created by the Securities and Exchange Commission. In this lesson, you will learn the definition, history, and purpose of the SEC.
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Other chapters within the Accounting 101: Financial Accounting course
- Introduction to Accounting
- Financial Statements in Accounting
- Mechanics of the Accounting Cycle
- Adjusting Accounts and Preparing Financial Statements
- Merchandising Operations and Inventory in Accounting
- Receivables in Accounting
- Completing the Operating Cycle in Accounting
- Long-Term Assets in Accounting
- Current and Long-Term Liabilities in Accounting
- Reporting & Analyzing Equity in Accounting
- Statement of Cash Flows in Accounting
- Financial Statement Analysis in Accounting
- Studying for Accounting 101