chapter 8 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
CHAPTER 8 PowerPoint Presentation
Download Presentation
CHAPTER 8

Loading in 2 Seconds...

play fullscreen
1 / 24

CHAPTER 8 - PowerPoint PPT Presentation


  • 115 Views
  • Uploaded on

INTERNAL CONTROL AND CASH الرقابة الداخلية على النقد. CHAPTER 8. Accounting Principles, Eighth Edition. Internal Control. Methods and measures adopted to: Safeguard assets. حماية الاصول

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'CHAPTER 8' - conan-gates


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
chapter 8
INTERNAL CONTROLAND CASH

الرقابة الداخلية على النقد

CHAPTER 8

Accounting Principles, Eighth Edition

internal control
Internal Control
  • Methods and measures adopted to:
    • Safeguard assets. حماية الاصول
    • Enhance accuracy and reliability of accounting records. Reduce risk of: تعزيز الدقة ومدى الاعتماد على السجلات المحاسبية
      • Errors (unintentional) تقليل مخاطر الاخطاء غير المقصودة
      • Irregularities (intentional) او الاخطاء المقصودة

LO 1 Define internal control.

internal control1
Internal Control

The Sarbanes-Oxley Act

هذا القانون متعلق بتعزيز الرقابة الداخلية تم استحداثة عام 2005 بعد سلسلة من الفضائح المحاسبية والتي تسببت بانهيار الكثير من الشركات الامريكية الكبرى

  • Companies must
    • develop principles of control over financial reporting.
    • تطوير مبادئ الرقابة الداخلية على التقارير المالية
    • continually verify that controls are working.
    • التحقق باستمرار من ان نظام الرقابة يعمل بشكل جيد

Independent auditors must attest to the level of internal control. المدققون المستقلون يجب ان يصادقوا أي يفحصوا مستوى الرقابة الداخلية

SOX created the Public Company Accounting Oversight Board (PCAOB).

LO 1 Define internal control.

internal control2
Internal Control

Principles of Internal Control مبادئ الرقابة الداخلية

Illustration 8-1

  • Measures vary with
  • size and nature of the business.
  • حجم الشركة وطبيعة عملها
  • management’s control philosophy.
  • فلسفة الادارة في الرقابة

LO 2 Identify the principles of internal control.

internal control3
Internal Control

Principles of Internal Control

Illustration 8-3

PHYSICAL, MECHANICAL, AND ELECTRONIC CONTROLS

Physical

حسي واقعي

Mechanical and Electronic

ألي والكتروني

LO 2 Identify the principles of internal control.

internal control4
Internal Control

Principles of Internal Control

  • INDEPENDENT INTERNAL VERIFICATION
    • Records periodically verified by an employee who is independent.
    • Discrepancies reported to management.
  • OTHER CONTROLS
    • Bond employees. كفالة موظفين
    • Rotate employees’ duties and require vacations.تدوير الموظفين على الاعمال
    • Conduct background checks. اجراء التفتيش المرتجع

LO 2 Identify the principles of internal control.

cash controls
Cash Controls

Internal Control over Cash Receipts

Establishment of Responsibility

Only designated personnel are authorized to handle cash receipts (cashiers)

Documentation Procedures

Use remittance advice (mail receipts), cash register tapes, and deposit slips

Independent Internal Verification

Supervisors count cash receipts daily; treasurer compares total receipts to bank deposits daily

Segregation of Duties

Different individuals receive cash, record cash receipts, and hold the cash

Physical, Mechanical, and Electronic Controls

Store cash in safes and bank vaults; limit access to storage areas; use cash registers

Other Controls

Bond personnel who handle cash; require employees to take vacations; deposit all cash in bank daily

Illustration 8-5

LO 3 Explain the applications of internal control principles to cash receipts.

cash controls1
Cash Controls
  • Cashconsists of coins, currency, checks, money orders, and money on hand or on deposit in a bank.
  • النقد يتألف من العملات المعدنية والورقية والشيكات والأوامر البريدية والأموال تحت اليد او المودعة لدىالبنك
  • Cash receipts come from:
    • cash sales مبيعات نقدية
    • collections on account from customers
    • المتحصلات النقدية من العملاء
    • receipt of interest, rent, and dividends
    • مقبوضات الفوائد والإيجار وأرباح الاسهم
    • investments by owners الاستثمارات من قبل المالكين
    • bank loans القروض البنكيه
    • proceeds from the sale of noncurrent assets
    • المتحصل من عملية بيع الاصول غير المتداولة

LO 3 Explain the applications of internal control principles to cash receipts.

mail receipts
Mail Receipts
  • Control Procedures: اجراءات الرقابة
    • Mail receipts should be opened by two people, a list prepared, and each check endorsed.
    • بريد المقبوظات يجب ان يفتح من قبل موظفان, وإعداد قائمة , والشكات المصادقة
    • Copy of the list, along with the checks and remittance advices, sent to cashier’s department.
    • نسخة من القائمة, مع الشكات والتحويلات ترسل دائرة الصندوق
    • Cashier adds the checks to the over-the-counter receipts and prepares a daily cash summary and makes the daily bank deposit.
    • دائرة الصندوق, تعد ملخص النقدية اليومي
    • Copy of list sent to treasurer’s office for comparison with total shown on daily cash summary.
    • نسخة من القائمة , ترسل الى مكتب مدير الخزينة للمقارنة بالإجمالي الظاهر في ملخص النقدية اليومي

LO 3 Explain the applications of internal control principles to cash receipts.

cash controls2
Cash Controls

Internal Control over Cash Disbursements

  • Generally, internal control over cash disbursements is more effective when companies pay by check, rather than by cash.
  • Applications:
    • Voucher system
    • Electronic funds transfers (EFT) system
    • Petty cash fund

LO 4 Explain the applications of internal control principles to cash disbursements.

cash controls3
Cash Controls

Internal Control over Cash Disbursements

Establishment of Responsibility

Only designated personnel are authorized to sign checks (treasurer)

Documentation Procedures

Use prenumbered checks and account for them in sequence; each check must have an approved invoice

Independent Internal Verification

Compare checks to invoices; reconcile bank statement monthly

Physical, Mechanical, and Electronic Controls

Store blank checks in safes, with limited access; print check amounts by machine in indelible ink

Segregation of Duties

Different individuals approve and make payments; check signers do not record disbursements

Other Controls

Stamp invoices

PAID

Illustration 8-8

LO 4 Explain the applications of internal control principles to cash disbursements.

cash controls4
Cash Controls

Internal Control over Cash Disbursements

  • Petty Cash Fund - Used to pay small amounts.
  • Involves: صندوق المصاريف النثرية يستخدم لدفع المقادير القليلة
    • establishing the fund, تأسيس الصندوق
    • making payments from the fund, and الدفع يتم من خلاله
    • replenishing the fund. اعادة تزويد الصندوق

LO 5 Describe the operation of a petty cash fund.

cash controls5
Cash Controls

E8-8Lincolnville Company uses a petty cash system. The fund was established on March 1 with a balance of $100. During March the following petty cash receipts were found in the petty cash box.

خلال الشهر الوصولات التالية وجدت في الصندوق

March 5 Stamp inventory طوابع $39

March 7 Freight-outمصاريف نقل بضاعة للخارج 21

March 9 Miscellaneous expenseمصاريف متفرقة 6

March 11 Travel expense مصاريف نقل 24

March 14 Miscellaneous expense 5

The fund was replenished أعيد تزويدهon March 15 when the fund contained $3 in cash عندما كان الصندوق يحتوي على 3 دولار فقط. On March 20, the amount in the fund was increased to $150.

Instructions: Journalize the entries in March that pertain to the operation of the petty cash fund.

LO 5 Describe the operation of a petty cash fund.

cash controls6
Cash Controls

E8-8The fund was established on March 1 with a balance of $100.

March 1

Petty cash 100

Cash 100

E8-8 The fund was replenished on March 15 when the fund contained $3 in cash.

March15

Postage expense 39

Freight-out 21

Miscellaneous expense 11

Travel expense 24

Cash over and short 2

Cash 97

LO 5 Describe the operation of a petty cash fund.

cash controls7
Cash Controls

E8-8 On March 20, the amount in the fund was increased to $150.

March 20

Petty cash 50

Cash 50

LO 5 Describe the operation of a petty cash fund.

use of a bank
Use of a Bank
  • Contributes to good internal control over cash.
  • تساهم في تعزيز الرقابة الداخلية على النقد
    • Minimizes the amount of currency on hand.
    • تقليل من حجم الاموال تحت اليد
    • Creates a double record of bank transactions.
    • خلق سجلين للنقدية واحد في الشركة والأخر في البنك
    • Bank reconciliation. اعداد مذكرة تسوية البنك

LO 6 Indicate the control features of a bank account.

use of a bank1
Use of a Bank

Illustration 8-10

Making Bank Deposits

الايداع لدى البنك

Authorized employee should make deposit.

Bank Code Numbers

Reverse Side

Front Side

LO 6 Indicate the control features of a bank account.

use of a bank2
Use of a Bank

Writing Checks تحرير الشيكات

Written order signed by depositor directing bank to pay a specified sum of money to a designated recipient.

Illustration 8-11

Maker

محرر الشيك

Payee

المدفوع لة

Payer

الدافع (البنك)

LO 6 Indicate the control features of a bank account.

use of a bank3
Use of a Bank

Illustration 8-12

  • Bank Statements
  • Debit Memorandum اشعار مدين
  • Bank service charge
  • خصم خدمات البنك
  • NSF (not sufficient funds)
  • الرصيد غير كافي ( شكات مرتجعة)
  • Credit Memorandum اشعار دائن
  • Collect notes receivable.
  • تحصيل اوراق القبض
  • Interest earned. ايراد فائدة

LO 6 Indicate the control features of a bank account.

use of a bank4
Use of a Bank

Reconciling the Bank Account تسوية حساب البنك

  • Reconcile balance per books and balance per bank to their adjusted (corrected) cash balances.
  • تسوية الحساب في الدفاتر والحساب بالبنك للحصول على القيمة الصحيحة لرصيد النقدية
  • Reconciling Items:
    • Deposits in transit. ايداعات في الطريق لم تظهر في الكشف الوارد من البنك
    • وتسمى ايضا ( شيكات برسم التحصيل) وهي شيكات ارسلت الى البنك للتحصيل من
    • Outstanding checks. شيكات متداولة , سلمت للعملاء لكن لم تصرف من البنك
    • Errors. اخطاء
    • Bank memoranda. اشعارات البنك

LO 7 Prepare a bank reconciliation.

use of a bank5
Use of a Bank

Reconciliation Procedures

Illustration 8-13

+ Deposit in Transit

- Outstanding Checks

+- Bank Errors

+ Notes collected by bank

- NSF (bounced) checks

- Check printing or other service charges

+- Book Errors

CORRECT BALANCE

CORRECT BALANCE

LO 7 Prepare a bank reconciliation.

use of a bank6
Use of a Bank
  • E8-11The following information pertains to Family Video Company.
  • Cash balance per bank, July 31, $7,263.
  • Cash balance per books, July 31, $7,284.
  • July bank service charge not recorded by the depositor $28.
  • Deposits in transit, July 31, $1,500.
  • Bank collected $900 note for Family in July, plus interest $36, less fee $20.The collection has not been recorded by Family, and no interest has been accrued.
  • Outstanding checks, July 31, $591.
  • Instructions
  • Prepare a bank reconciliation at July 31.
  • Journalize the adjusting entries at July 31 on the books of Family Video Company.

LO 7 Prepare a bank reconciliation.

use of a bank7
Use of a Bank

E8-11 a) Prepare a bank reconciliation at July 31.

Cash balance per bank statement $7,263

Add: Deposit in transit 1,500

Less: Outstanding checks (591)

Adjusted cash balance per bank$8,172

Cash balance per books $7,284

Add: Collection of notes receivable 900

Collection of interest 36

Less: Bank service charge (28)

Note collection fee (20)

Adjusted cash balance per books$8,172

LO 7 Prepare a bank reconciliation.

use of a bank8
Use of a Bank

E8-11 b) Journalize the adjusting entries at July 31 on the books of Family Video Company.

Dr.

Cr.

July 31

Miscellaneous expense 28

Cash 28

July 31

Cash 916

Miscellaneous expense 20

Interest revenue 36

Notes receivable 900

Note: Adjusting journal entry includes only the adjustments to the cash balance per books.

قيود التسوية فقط متعلقة بتسوية حساب النقدية في دفاتر المشروع

LO 7 Prepare a bank reconciliation.