1. PAUL FEARNLEY paul.fearnley@port.ac.uk Management accounting and Finance Accounting Controls L1

2. Unit Coordinator: Ahmed Abdel-Maksoud Ahmed.abdel-maksoud@port.ac.uk Phone 4053

3. A series of principles & procedures to ensure the integrity of the accounting data and information, and to preserve the assets of the organisation Definition of accounting controls

4. Accounting information data measures or counts things data summarised and transformed to give information information used to run business

5. Errors errors in data or information misleads and leads to wrong decisions examples of errors –addition –classification –errors of principle how can we minimise errors?

6. Fraud fraud is deliberate action to mislead or misappropriate for personal gain examples of fraud –theft of cash, cheques, stock etc. –teeming and lading –false employees –personal expenditure through payments system how can we eliminate fraud?

7. System Separation of duties tight supervision of stock well advertised risk of audit checks pre-numbered control documents with completeness checks reconciliation of 3rd party statements e.g. bank statements monitoring of profit margins budgets to aid budgetary control control data

8. Staff collusion holidays no-one to be indispensable well advertised risk of random checks

9. Assets cash working capital –stock –creditors –debtors fixed assets

10. Cash Identify as early as possible bank as early as possible restricted access to sources of money –cheque book –check requisitions –payroll amendments –postal receipts –order forms monthly reconciliation of bank balance with cash book

11. Cost of Control What is the cost of control? What is the benefit of the control? Risk of error or fraud Magnitude and impact of error or fraud