Lecture 05 ADM - Cash and Receivables-1 现金及应收账款
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12
CASH
10
Limitations of internal control
• Cost vs. Benefit – Cost of establishing procedure should not exceed expected benefit
• Human element – Fatigue, carelessness, indifference
The role of internal audit is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively. Internal Audit teams duty is to provide an unbiased and objective view. ... In sum, internal auditors help organisations to succeed.
9
Principles of internal control (Continued) 5. Independent internal verification
➢ Checking procedures to ensure segregation of duties ➢ Monitoring by supervisors ➢ Rotation of duties ➢ Verification by internal auditor
3. Physical, mechanical and electronic controls
➢ Use of safes and safety deposit boxes
➢ Locked cabinets and warehouses
➢ Alarms & Time Clocks
➢ Monitors and sensors
bad debts 7. Describe how receivables are reported in financial
statements 8. Explain the principles of receivables management应收账
管理
2
1. INTERNAL CONTROL
• Internal control consists of all the processes used by management to achieve effective and efficient operations, compliance with laws, etc
• It includes policies to: – safeguard assets – enhance accuracy and reliability of accounting records
➢ Identify risks:
Identify what, why and how things can arise as the basis for further analysis.
➢ Analyse risFra biblioteks:Determine the existing controls and analyse risks in terms of consequences 结果and likelihood in the context of those controls.
.au/Safety/Why-is-risk-management-important-4715.aspx
6
1. RISK MANAGEMENT PROCESS (Continued)
➢ Treat risks:
Low-priority risks should be monitored and reviewed. For higher consequence risks, develop and implement a specific management plan or procedure that includes consideration of all aspects required to mitigate the risk to an adequate level
‘Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risk associated with any activity, function or process in a way that will enable organisations to minimise losses and maximize opportunities’.
2. Discuss the basic principles of cash management 3. Identify the different types of receivables 6. Apply methods used to account for receivables, including
• Collusion – Two or more individuals who work together to get around controls
• Size of business
11
Internal control and forensic accounting
• Forensic accounting is the application of accounting knowledge and skills to issues arising in the context of civil and criminal litigations and investigations
• Common areas of investigation – Transaction reconstruction and measurement – Asset identification and valuation – Fraud – Bankruptcy – Divorce and family law
Identify the risks
Communicate & consult
Monitor & review
Establish the context: Risk
Elements
Analyse risks Evaluate risk
Treat risk
5
1. RISK MANAGEMENT PROCESS
Accounting for Decision Making (ACCT90004)
LECTURE : Cash / Receivables
Learning Objectives / Outcomes
1. Identify the principles and application of internal control in the context of cash handling
➢ Monitor and review:
Monitor and review the performance of the risk management system and changes that might affect it.
➢ Communicate and consult:
Communicate and consult with internal and external stakeholders as appropriate at each stage of the risk management process as well as the process as a whole.
➢ Establish the context:
Establish the context in which the rest of the process will take place. Criteria against which risk will be evaluated should be establishes and the structure of the analysis defined.
The analysis should consider the range of potential consequences and how likely those consequences are to occur.
➢ Evaluate risks:
Compare estimated level of risk against the pre-established criteria so risks can be ranked and management priorities identified.
• It is an essential part of risk management
3
1. RISK MANAGEMENT
How is risk managed? ‘Risk management is recognised as an integral component of good
management and governance. It is an iterative process consisting of steps, which, when undertaken in sequence, enable continual improvement in decision making’.
.au/Safety/Why-is-risk-management-important-4715.aspx
4
The Main Elements of Risk Management
The main elements of the risk management process
.au/Safety/Why-is-risk-management-important-4715.aspx
7
PRINCIPLES OF INTERNAL CONTROL
1. Establishment of responsibility
➢ Assignment of responsibility to specific individuals
8
PRINCIPLES OF INTERNAL CONTROL 3. Documentation procedures – All documents generated by the business to be prenumbered – Documents to be initialled – Provides an audit trail for checking of transactions
➢ Monitoring of compliance遵守 with procedures.监督对程序 的遵守情况
2. Segregation of duties
➢ Responsibility for related activities assigned to different people
➢ Separation of responsibility for recording and physical custody of the asset
CASH
10
Limitations of internal control
• Cost vs. Benefit – Cost of establishing procedure should not exceed expected benefit
• Human element – Fatigue, carelessness, indifference
The role of internal audit is to provide independent assurance that an organisation's risk management, governance and internal control processes are operating effectively. Internal Audit teams duty is to provide an unbiased and objective view. ... In sum, internal auditors help organisations to succeed.
9
Principles of internal control (Continued) 5. Independent internal verification
➢ Checking procedures to ensure segregation of duties ➢ Monitoring by supervisors ➢ Rotation of duties ➢ Verification by internal auditor
3. Physical, mechanical and electronic controls
➢ Use of safes and safety deposit boxes
➢ Locked cabinets and warehouses
➢ Alarms & Time Clocks
➢ Monitors and sensors
bad debts 7. Describe how receivables are reported in financial
statements 8. Explain the principles of receivables management应收账
管理
2
1. INTERNAL CONTROL
• Internal control consists of all the processes used by management to achieve effective and efficient operations, compliance with laws, etc
• It includes policies to: – safeguard assets – enhance accuracy and reliability of accounting records
➢ Identify risks:
Identify what, why and how things can arise as the basis for further analysis.
➢ Analyse risFra biblioteks:Determine the existing controls and analyse risks in terms of consequences 结果and likelihood in the context of those controls.
.au/Safety/Why-is-risk-management-important-4715.aspx
6
1. RISK MANAGEMENT PROCESS (Continued)
➢ Treat risks:
Low-priority risks should be monitored and reviewed. For higher consequence risks, develop and implement a specific management plan or procedure that includes consideration of all aspects required to mitigate the risk to an adequate level
‘Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analysing, evaluating, treating, monitoring and communicating risk associated with any activity, function or process in a way that will enable organisations to minimise losses and maximize opportunities’.
2. Discuss the basic principles of cash management 3. Identify the different types of receivables 6. Apply methods used to account for receivables, including
• Collusion – Two or more individuals who work together to get around controls
• Size of business
11
Internal control and forensic accounting
• Forensic accounting is the application of accounting knowledge and skills to issues arising in the context of civil and criminal litigations and investigations
• Common areas of investigation – Transaction reconstruction and measurement – Asset identification and valuation – Fraud – Bankruptcy – Divorce and family law
Identify the risks
Communicate & consult
Monitor & review
Establish the context: Risk
Elements
Analyse risks Evaluate risk
Treat risk
5
1. RISK MANAGEMENT PROCESS
Accounting for Decision Making (ACCT90004)
LECTURE : Cash / Receivables
Learning Objectives / Outcomes
1. Identify the principles and application of internal control in the context of cash handling
➢ Monitor and review:
Monitor and review the performance of the risk management system and changes that might affect it.
➢ Communicate and consult:
Communicate and consult with internal and external stakeholders as appropriate at each stage of the risk management process as well as the process as a whole.
➢ Establish the context:
Establish the context in which the rest of the process will take place. Criteria against which risk will be evaluated should be establishes and the structure of the analysis defined.
The analysis should consider the range of potential consequences and how likely those consequences are to occur.
➢ Evaluate risks:
Compare estimated level of risk against the pre-established criteria so risks can be ranked and management priorities identified.
• It is an essential part of risk management
3
1. RISK MANAGEMENT
How is risk managed? ‘Risk management is recognised as an integral component of good
management and governance. It is an iterative process consisting of steps, which, when undertaken in sequence, enable continual improvement in decision making’.
.au/Safety/Why-is-risk-management-important-4715.aspx
4
The Main Elements of Risk Management
The main elements of the risk management process
.au/Safety/Why-is-risk-management-important-4715.aspx
7
PRINCIPLES OF INTERNAL CONTROL
1. Establishment of responsibility
➢ Assignment of responsibility to specific individuals
8
PRINCIPLES OF INTERNAL CONTROL 3. Documentation procedures – All documents generated by the business to be prenumbered – Documents to be initialled – Provides an audit trail for checking of transactions
➢ Monitoring of compliance遵守 with procedures.监督对程序 的遵守情况
2. Segregation of duties
➢ Responsibility for related activities assigned to different people
➢ Separation of responsibility for recording and physical custody of the asset