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Author Topic: Week 5 Memo  (Read 827 times)

jharrison

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Week 5 Memo
« on: October 02, 2013, 12:41:24 pm »
This week we will discuss accounting information systems (AIS), fraud, internal control, and cash. When a company maintains accounting records, they have most likely moved away from a manual to some type of computer system. AIS make it easier to compile information for both internal and external users of the company’s financial information. AIS follow three basic principles in order to be successful; cost effectiveness, usefulness, and flexibility. Your focus on this chapter will be on the special journals. These journals are used to expedite journalizing and posting transactions.  The second chapter this week relates to internal control and how the Sarbanes-Oxley Act of 2002 (SOX) effects companies. Some students gets confused on the following rubric item, “internal control and identified the principles of internal control activities”. Let’s make sure that we discuss the 6 internal control activities. You can even give examples of these at your own employer. When completing the rubric section, “Discussed the preparation of a bank reconciliation and explain the reporting of cash.”, I would take a look at your homework for the week. There is a bank reconciliation that has 2 parts. You can explain the actual reconciliation and the journal entries here.