Module 14 Flashcards
(41 cards)
What is Internal Control?
We need to safeguard assets, promote efficiency and accurate F/S
What is the point in accounting?
It is to turn data sets into usable information while following GAAP
What is an open system?
They interact with their enviroment
What is a closed system?
They do not interact with their environment`
Why does accounting need theory?
Can be viewed as a profession with rules
What is a conceptual framework?
A theory with holes, but has guidelines
What are some important elements of Conceptual Framework?
Professional and Technical foundations
What are some detailed objectives of accounting?
Relevance and Reliability to make quick and proper decisions
What is an accounting world ruled with Relevance look like?
Cash and Market Values
What is an accounting world ruled with Reliability look like?
Scorecard and Accrual Basis
What are accounting standards?
Specifies how events are recognized and presented
Who is responsible for CPA Handbook?
AcSB or Accounting Standards Board
What is IFRS?
International Financial Reporting Standards
What is ASPE?
Accounting Standards for Private Enterprises
Why is auditors pesky?
They want safe harbors and assurance that we are not cooking books
Why do we need Internal Control?
Safeguard Assets, Promote efficiency and ethics
Why is IC important?
Because it is the glue between trust and F/S
What is Internal Control Hierarchy
4 Goals, 40, Principles and 40,000 Procedures
What are some principles of Internal Control?
Segregation of duties and Documentation Standards
What are some questions that auditors ask on IC?
Effective, Efficient, Continuous and Redundant
What are 2 types of control?
Preventive and Detective
What are some objectives of Revenue Cycles?
Access to records with few, different people handle different assets
What is procedure for cash receipts?
Manager compares total and ultimate security with cheques
What is an audit?
Independent verification with standards
