Principles of Accounting Volume 1 Financial Accounting by OpenStaxISBN: 9781947172678
Publication Date: 2019
Franklin, M. et al. (2019). Principles of Accounting, Volume 1: Financial Accounting . OpenStax.
Read the seventh chapter “Fraud, Internal Controls, and Cash” (pg. 531 to 558). Readings introduce internal control and the threat of occupational fraud. This is a serious exposure for businesses as approximately 6% of sales revenue is lost annually. Internal controls, if added to company structure, reduce the possibility of fraud in an organization. The fraud triangle is introduced and lays out the creation and motivation that enables fraud. Students should focus on the elements of the internal control environment. The importance of ethical leadership is emphasized. Students should focus on the use of internal controls as a means of reducing the threat of occupational fraud.
Principles of Accounting Volume 1 Financial Accounting by