Accounting Foundations: Internal Controls
1h 46mIntermediate2020-02-24
Authors
Jim Stice
Professor of Accounting at BYU
Kay Stice
Professor of Accounting at the BYU Marriott School of Management
Course details
Knowingly—or unknowingly—reporting fraudulent information in your financial statements can lead to catastrophic consequences for your business. To prevent fraud, you need a series of internal controls, including a top-down control environment, physical controls, and ongoing monitoring. This course teaches you how to use these internal controls to increase the integrity of your financial statements. Professors Jim and Kay Stice take a look at the types of financial reporting problems that can occur and safeguards to minimize them. They also discuss the impact of Sarbanes-Oxley (SOX), and the compliance requirements for U.S. businesses that fall under the act. Plus, find out how the Securities and Exchange Commission enforces accurate financial reporting in the securities market and beyond.
Topics include:
- Identify the three components of the fraud triangle.
- Summarize the Sarbanes-Oxley Act of 2002.
- Describe the structure and responsibilities of an audit committee.
- Explain the responsibilities of an auditor.
- Discover a typical accounting error.
- Distinguish the four aspects of earnings management.
Topics include:
- Identify the three components of the fraud triangle.
- Summarize the Sarbanes-Oxley Act of 2002.
- Describe the structure and responsibilities of an audit committee.
- Explain the responsibilities of an auditor.
- Discover a typical accounting error.
- Distinguish the four aspects of earnings management.
Skills covered
Accounting SkillsFinance and AccountingDeep Dive (X:Y)
Concepts
0. Introduction
- 01 - Increasing financial statement integrity
1. The Types of Problems that Can Occur in Financial Statements
- 02 - Classic cases - WorldCom
- 03 - Errors in the reporting process
- 04 - Disagreements in judgment
- 05 - Fraud - Theft and fraudulent financial reporting
2. Safeguards to Minimize Financial Reporting Problems
- 06 - The fraud triangle
- 07 - The control environment
- 08 - Segregation of duties and physical control
- 09 - Proper procedures and documents plus independent checks
3. The Motivations Behind Earnings Management
- 10 - Classic cases - Enron
- 11 - Why do companies manage earnings
- 12 - The earnings management continuum
- 13 - Is earnings management ethical
4. Sarbanes Oxley
- 14 - Accounting credibility crisis in 2002
- 15 - Public Company Accounting Oversight Board (PCAOB)
- 16 - Constraints on auditors
- 17 - Constraints on management
5. The Role of Auditors, Both Internal and External
- 18 - Classic cases - Arthur Andersen
- 19 - Internal auditors
- 20 - External auditors
- 21 - What do auditors do
- 22 - Are external auditors really independent
6. The Role of the Securities and Exchange Commission (SEC)
- 23 - Classic cases - Stock market crash of 1929
- 24 - What is the job of the SEC
- 25 - Common SEC filings - Registration statement, 10-K, and 10-Q
- 26 - Common SEC punishments
Conclusion
- 27 - Internal controls and management credibility