Fundamental Principles of AIs Q Cost-effectiveness Balance Q Flexibility to meet future needs 0 Adequate internal control ◆ Effective reporting Q Adaptation to organization structure Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
6 Fundamental Principles of AIS ⧫Cost-effectiveness Balance ⧫Flexibility to meet future needs ⧫Adequate internal control ⧫Effective reporting ⧫Adaptation to organization structure
Internal contros of as Q Competent personnel and rotation of duties Q AsSignment of responsibility Separation of responsibility for related operation Separation of operation and accounting Q Proofs and security measure ◆ Independent review Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 7
7 Internal Controls of AIS ⧫Competent personnel and rotation of duties ⧫Assignment of responsibility ⧫Separation of responsibility for related operation ⧫Separation of operation and accounting ⧫Proofs and security measure ⧫Independent review
The accounting process Appropriate business Input Record transactions documents prepared or received In journals Post transactions to ledgers Output Invoices prepare reports and Bank other financial Statements statements Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity 8
8 The accounting process Appropriate business documents prepared or received Record transactions in journals Post transactions to ledgers prepare reports and other financial statements Input Output Bank Statements Invoices
Components of an AIs ◆ Source documents Special journals ◆ Subsidiary ledgers Q General ledgers( Control account Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
9 Components of an AIS ⧫Source documents ⧫Special journals ⧫Subsidiary ledgers ⧫General ledgers (Control account)
Source documents Bank Statements Employee Records Cheques Invoices Source Documents Task Team of FUndaMientalactoUntING Business Sehool. Sun Yatsen niversity
10 Source documents Source Documents Bank Statements Cheques Employee Records Invoices