Page 337 - Accounting Principles (A Business Perspective)

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INVOICE Invoice No. 1574
Date: 2010 Dec. 15
WILXES RADIO COMPANY
2515 West Peachtree Street
Atlanta, Georgia 30303
Customer's Orders No. N-14S
Sold to: Bryan Wholesale Co.
Address: 475 Mason Street
Detroit, Michigan 4S823
Terms: 2/10, n/30, FOB destination Date shipped: 2010 December 15
Shipped by: Nagel Trucking Co.
Price Total
Description Item Number Quantity
Per Unit Amount
Model No. 200 $50 $10,000
5868-24393
Total $10,000
Exhibit 67: Invoice
Management holds ultimate responsibility for establishing and maintaining an effective internal control
structure. Through leadership and example, management demonstrates ethical behavior and integrity within the
company.
The board of directors provides guidance to management. Because board members have a working knowledge of
the functions of the company, they help shield the company from managers who try to override some control

procedures for dishonest purposes. Often, an efficient board that has access to the company's internal auditors can
discover such fraud.
Auditors within the organization evaluate the effectiveness of the internal control structure and determine
whether company policies and procedures are being followed. All employees are part of a communications network
that enables an internal control structure to work effectively.
Computerized financial records require the same internal control principles of separation of duties and control
over access as a manual accounting system. The exact control steps depend on whether a company is using

mainframe computers and minicomputers or microcomputers.
Large corporations might use all three types of computers in their accounting environments. The size and
complexity of mainframe computers and minicomputers require specially trained persons to keep these systems
operating. While systems specialists operate the computer system itself, programmers develop the programs that
direct the computer to perform specific tasks. In a mainframe or minicomputer environment, internal control
should include the following:
• Control computer access by placing the computer in an easily secured room, and allow only persons
authorized to operate the computer to enter the room.
• Restrict the access of systems specialists (who operate the computer) to software programs and the access

of programmers to the computer. This policy prevents the running of unauthorized, altered programs.
• Require the use of passwords to access sensitive company data and confidential personal data. Change the
passwords as necessary.
Many smaller companies use microcomputers instead of a mainframe or a minicomputer. Also, large companies
might supply certain employees with personal computers. The use of personal computers changes the control

Accounting Principles: A Business Perspective 338 A Global Text