Many other controls can be built into computer systems. Examples include the use of software and hardware to make it difficult for unauthorized users to break into computer networks and databases. The software and hardware also can monitor systems to detect attempts to gain unauthorized access. Read more…
Many internal controls should be built into computer information systems. These controls protect a companys information resources from unauthorized access, improper use, and destruction. System controls determine who can gain access to various parts of a companys database. Users should have appropriate identification and passwords to log onto networks or to use network resources. Users typically are assigned to groups based on the type of work they perform. For example, data entry personnel in the Read more…
Management should create a code of ethics and other documents that establish company policy and inform employees of acceptable and expected behavior. These policies should consider the relationship between a company and its customers, employees, suppliers, stockholders, and community. As an example, Exhibit 6 identifies the contents of United Technologies Corporations Code of Ethics. Read more…
An essential requirement of any accounting system is that it provide accurate data. Incorrect data are not useful and can lead to poor decisions. Consequently, controls are important in a company to help ensure that data are accurate. Incorrect data can result from errors in recording data or from events that affect a companys assets. For example, if Moms Cookie Company purchased inventory at a cost of $1,200, it would be incorrect to record the amount owed the supplier as $1,150. It is correct to record an increase in Accounts Payable and Merchandise Inventory of $1,200. However, if the merchandise is stolen from the Read more…
There is a time when people need to get loans in order to get something bigger. It is true that saving money is not as easy as it seems. Sometimes, we are tempted to buy new expensive useless goods without considering the functions. Therefore, in this situation, loans can be very useful since you do not have to wait for years or month to buy a car, house or even expanding your business company. However, getting loans is also not easy thing to do since there are so many financial institutions require you to put collateral against your loans as personal guarantee. People who have bad credit reputation also cannot get the loans from those kinds of financial institution. Read more…
In addition to the auditors report, the annual report usually contains a statement of management responsibilities. Exhibit 5 contains a typical statement of management responsibilities. Management is responsible for preparing financial statements and related information that fairly reports the business activities of a corporation. This information should be prepared in conformity with GAAP. Management is also responsible for developing and implementing a system of internal controls. Internal controls are procedures a company uses to protect its assets and ensure the accuracy of its accounting information. Read more…
Developing and running your business by yourself is not so simple. Many things you must consider and one of the important things is the way to introduce your product or services to the market. Since we are in digital era, there are many alternative ways to do advertisement and promo. You can try online advertisement by developing your companys website and make monthly product campaign by sending out email newsletter to your customer. In order to improve your product quality and service you can use feed back from your customer as reference and you can also use it to define new product. You can get your customers feed back by doing online survey. Read more…