9/23 Class Flashcards
comparative balance sheet
2012 - 2013
grading on SUA
grading highly on internal controls
deliverables
look online for grading rubric comparative financial statements income statement closing entries 9-47 trial balance this is the check figures for if you are off balance
Chapter 5
Sarbanes Oxley Act
Corporate Governance
the stewardship of the business, system of checks and balances to verify the management members are creating value for shareholders
1933 Securities act
details the procedures for having a public offering
19xx Securities act
the rules public companies have to abide by
Sec 201
things outside of the scope of auditors, things that we can't do, can't value assets can't do pensions internal audits management, investment, legal advisory we can do tax services
Sec 101
PCAOB established, more than a 100 they must be audited every year, less than 100 is every three years
Sec 206
conflicts of interest, you can’t audit a company for a year that wants to hire you
Sec 302 & 906
….
Sec xx
clawback clause, when you get bonuses that are calculated from sales that are restated you must pay that back
Sec 404
internal controls
Sec xx title 8
felony to knowingly destroy working papers
Control Activities COSO
policies include processes and controls
example controls:
top level reviews
Information processing controls
accuracy
completeness
authorization
system controls (General/Application)
Physical Controls
Performance Indicators
Segregation of Dutiesprocesses
procedures that originate, transfer or change accounting data
controls
procedures designed to prevent or detect errors resulting from the processing of accounting information
documentation techniques
documentation of processes practical purposes 404 compliance common documentation techniques narratives questionnaires policy and procedure entity relationship diagram data flow diagrams flowcharts
data flow diagrams
use symbols to represent the processes, data sources, data flows, and entities in a system
logical systems
square symbol is where the process starts
project
data flow diagram
document flowcharts
illustrate the relationship among processes and the documents that flow between them
contain more details than data flow diagrams
clearly depict the separation of functions in a system
project notes
if it doesn’t tell you that you use a computer then you don’t use one, it is a manual process
when the project says you use a terminal you use a terminal symbol
things in project: computer process, direct access, and terminal process
AE bridal case
oval
start or end
incomplete rectangle
source document or report
trapezoid
manual operations
calculated batch total
forget about it
page connectors
use the circle for on page connector
use the square on top of a triangle it is an off page connector
system flowcharts
used to represent the relationship between the key elements – input sources, programs, and output products of computer systems
depict the type of media being used
in practice not much difference between document and system flowcharts
