To compliment the overarching concepts of the ERM framework

To respond to the internal control assessment requirements of the SOX Act of 2002

To help businesses assess internal control

As a part of the Congressional task force known as the Treadway Commission

Board of Directors

Authority and responsibility

Human Resources

Organizational structure

Breakdown

Collusion

Management override

Costs vs benefits

enters and approves purchase orders.

matches invoices to purchase orders and receiving reports.

adds vendors and makes changes to a vendor master file.

receives goods from vendors and signs off on the deliveries.

Custody of signed checks yet to be mailed and maintaining depreciation schedules.

Approving sales returns on customer accounts and depositing customer checks in the bank.

Preparing monthly customer statements and maintaining the A/P subsidiary ledger.

Posting A/P transactions and entering additions and terminations to payroll.

Never

Without exception

Except in the ordinary course of business

Except when required by law