1. Chapter 5 Sarbanes-Oxley, Internal Control, and Cash

2. Sarbanes-Oxley Act of 2002

3. Objectives of Internal Control

4. Elements of Internal Control Control environment Risk assessment Control procedures Monitoring Information and communication

5. Control Environment

6. Risk Assessment Identifies risks so management can take steps to control them

7. Control Procedures

8. Monitoring Locates weaknesses and improves control effectiveness Includes on-going efforts and separate evaluations

9. Information and Communication Risk Assessment ControlEnvironment Monitoring ControlProcedures

10. Limitations of Internal Controls Human Elements Cost / Benefit of System

11. The Nature of Cash Coins Currency Checks Money Orders Money on Deposit

12. Cash Received from Sales

13. Cash Received in the Mail Remittance Advice Person Opening Mail CheckDeposit

14. Cash Received by EFT Company Bank Customer Bank

15. Control Over Cash Payments Voucher Check issued to vendor Approved voucher entered to System Invoice, Purchase Order, and Receiving Report

16. Nature of a Bank account and its use for controlling cash

17. Bank Statement Reconciliation

18. Steps in the Reconciliation Process

19. Special Purpose Cash Funds – Petty Cash

20. NetSolutions - Sales Transactions

21. The End