tailieunhanh - Guide Accounting For Dummies_2

Tham khảo tài liệu 'guide accounting for dummies_2', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 64 Part I Opening the Books on Accounting Internal controls against mistakes and theft Accounting is characterized by a lot of paperwork forms and procedures are plentiful. Most business managers and employees have their enthusiasm under control when it comes to the paperwork and procedures that the accounting department requires. One reason for this attitude in my experience is that nonaccountants fail to appreciate the need for accounting controls. These internal controls are designed to minimize errors in bookkeeping which has to process a great deal of detailed information and data. Equally important controls are necessary to deter employee fraud embezzlement and theft as well as fraud and dishonest behavior against the business from the outside. Every business is a target for fraud and theft such as customers who shoplift suppliers who deliberately ship less than the quantities invoiced to a business and hope that the business won t notice the difference called short-counts and even dishonest managers themselves who may pad expense accounts or take kickbacks from suppliers or customers. For these reasons a business should take steps to avoid being an easy target for dishonest behavior by its employees customers and suppliers. Every business should institute and enforce certain control measures many of which are integrated into the accounting process. Following are five common examples of internal control procedures Requiring a second signature on cash disbursements over a certain dollar amount Matching up receiving reports based on actual counts and inspections of incoming shipments with purchase orders before cutting checks for payment to suppliers Requiring both a sales manager s and another high-level manager s approval for write-offs of customers overdue receivable balances that is closing the accounts on the assumption that they won t be collected including a checklist of collection efforts that were undertaken Having auditors or employees who do not work