ACCOUNTING SYSTEM AND CONTROL

1. ACCOUNTING SYSTEM AND CONTROL ACT 2112 GROUP 8 ACT 2112 - Sherliza Puat Nelson

2. ACCOUNTING SYSTEM AND CONTROL • Why we need control • Types of problems that can occur • Safeguards designed to minimise problems (internal control) • Control in accounting • Need for monitoring • What is auditing ACT 2112 - Sherliza Puat Nelson

3. Why we need control? • Financial statements might be manipulated. • Fraudulent activities. • Misrepresentation of financial statements. ACT 2112 - Sherliza Puat Nelson

4. Types of problems that occur • Error – in recording transactions. • Disagreement – different judgments, estimates. • Fraud – financial statement, record keeping. ACT 2112 - Sherliza Puat Nelson

5. Internal Control Structure • To provide accurate accounting records. • Safeguards assets and records. • Effectively and efficiently run the organisation. • Management policies. ACT 2112 - Sherliza Puat Nelson

6. Control in Accounting • Validity • Authorisation • Completeness • Classification • Timeliness • Valuation • Posting and summarisation ACT 2112 - Sherliza Puat Nelson

7. The need for monitoring • A system of internal control provides assurance as to the quality of the financial information. • Management has the opportunity to influence the outputs of the accounting process ACT 2112 - Sherliza Puat Nelson

8. Auditing • Definition: • An examination and verification of a company’s financial and accounting records and supporting document ACT 2112 - Sherliza Puat Nelson

9. Auditing • Types • Financial statements audit • Compliance audit • Operational audit • Forensic audit ACT 2112 - Sherliza Puat Nelson

10. Role of Auditors • Internal auditors • Operational and compliance audit. • External auditors • Financial statements audit. ACT 2112 - Sherliza Puat Nelson

11. Government Audit • Auditor General responsible for auditing all the Federal and State accounts. Also the public authorities and statutory bodies. ACT 2112 - Sherliza Puat Nelson