fincon 3

Most important function of the controller: Create and maintain the corporate financial control system.

BASIC ELEMENTS This are set of procedures established to achieve the specific objectives of an organization.

Types of controls: - Defined as the plan of organization and all methods and procedures that are concerned with the safeguarding of assets and the reliability of the financial records.

Types of controls: - Comprise the plan of organization and all methods and procedures that relate to operational efficiency and adherence to managerial policies.

Types of controls: - Concerns the establishment of policy and basic guidelines by which an enterprise will be directed as a means of achieving the business objectives.

Two parts of internal control structure: The corporate atmosphere in which the accounting controls exist and in which the financial statements are prepared.

Two parts of internal control structure: The proper direction of the accounting system is one of the principal responsibilities of the controller.

Controls in Accounting System 1. Control check stock. 2. Control signature plates. 3. Separate responsibility for the cash receipt and bank reconciliation functions. 4. Perform bank reconciliations.

Controls in Accounting System Require board approval of substantial changes in investment account designations for transfer between available-for-sale and trading investments.

Controls in Accounting System (INVESTMENTS) are debt securities which the enterprise has the intent and ability to hold to maturity.