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    Dafar

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    Akkama
    The document discusses the key elements of an effective accounting system and control procedures. An accounting system should identify, record, measure, classify, and report all valid transactions with sufficient detail in a timely manner. It consists of methods and records to document an entity's financial activities. Effective control procedures require proper authorization, segregated duties, documented records, access controls, and independent checks.

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    Dafar

    Uploaded by

    Akkama
    8 views2 pages
    The document discusses the key elements of an effective accounting system and control procedures. An accounting system should identify, record, measure, classify, and report all valid transactions with sufficient detail in a timely manner. It consists of methods and records to document an entity's financial activities. Effective control procedures require proper authorization, segregated duties, documented records, access controls, and independent checks.

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    The document discusses the key elements of an effective accounting system and control procedures. An accounting system should identify, record, measure, classify, and report all valid transactions with sufficient detail in a timely manner. It consists of methods and records to document an entity's financial activities. Effective control procedures require proper authorization, segregated duties, documented records, access controls, and independent checks.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    8 views2 pages

    Dafar

    Uploaded by

    Akkama
    The document discusses the key elements of an effective accounting system and control procedures. An accounting system should identify, record, measure, classify, and report all valid transactions with sufficient detail in a timely manner. It consists of methods and records to document an entity's financial activities. Effective control procedures require proper authorization, segregated duties, documented records, access controls, and independent checks.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    The Accounting System

    Evidences provided through a chain of coding, cross referencing and documentation


    concerning account balances and other summery results with original data
    transaction data has to be cross checked. As accounting system focuses on
    transactions, it should provide a complete audit for each transaction.

    Effective accounting system should

    a) identify and record all valid transactions


    b) describe transactions in sufficient detail on time, to permit proper
    classifications of transactions for financial reporting
    c) measure and record transactions based on their proper value
    d) present the transaction and related disclosures in the financial
    statements properly

    The accounting system consists of the methods and records established to identify,
    assemble, analyse, classify, record and report an entity ’s transactions.

    Elements of Control Procedure

    Control procedures have the following elements:


    1. proper authorization
    2. segregation of duties
    3. documents and records
    4. access controls
    5. independent check

    Control procedures will be effective if:


    1. management bodies act with in the scope of their activity to authorize
    transactions

    2. responsibilities for certain accounting operations, for example:


    maintaining transactions and maintaining custody of asset (cash) are
    segregated

    3. documents are pre numbered and properly filed and records are
    properly maintained

    4. work performed by individuals or departments are to be verified or


    independently checked by other persons or departments

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