Week 8 — Readings & Resources

Your primary reading is Chapter 8 (in this module). Everything below is the optional, go-deeper layer — pick what helps, skip the rest.

How to use this page

This page has 10 items (4 readings and 6 videos). Allow 40–48 minutes for everything. Each group points back to the matching chapter section and class-session segment, so use the full menu when you want more, or take the quick path below.

Every video here has captions: turn them on with the CC button in the player. The chapter covers the same ideas in text.

Pick-one quick path (18–21 min total)

• Internal Controls Framework — OJP Financial Management and Support Center
• Internal Controls that Every Business Should Have — Carr, Riggs & Ingram
• Governmental Accounting: Internal Control Structure — National Center for Education Statistics, U.S. Department of Education

① The five components at work

Chapter 8, Section “Protect the books: internal control and its five components” · Session 2, Segment 7, “Internal control and its five components” · Remember: the five components work together, starting with the example the people in charge set.

• Internal Controls Framework — OJP Financial Management and Support Center — a federal grants office's seven-minute tour of the five components in order, from the control environment as the foundation through monitoring, with COSO's 1992 framework and its 2013 update named at the start. It gives separation of duties as one example of a control activity. Its later minutes add COSO's cube of objectives and its 17 principles, more than this course teaches, and close with the office's own materials. (video, 7 min) (captions: creator)
• 5 Components of Internal Control: Understanding the COSO Framework and C.R.I.M.E. — KirkpatrickPrice — an audit firm's two-minute run through the five components with the memory aid CRIME. Watch one difference: the aid scrambles the order, while the chapter keeps the Green Book's order, and the video frames everything around a kind of audit report this course does not teach. (video, 2 min) (captions: automatic)
• Governmental Accounting: Internal Control Structure — National Center for Education Statistics, U.S. Department of Education — a federal accounting handbook's section that names the five components in the chapter's order with a short passage on each, then sorts everyday controls into types such as segregation of duties, authorization and approval, and locked storage for assets. Read through the reconciliation section and skip the computer controls at the end. Use it while completing the Week-8 module overview. (reading, 6–9 min)
• Internal Controls that Every Business Should Have — Carr, Riggs & Ingram — an accounting firm's fraud specialist on controls for a business too small to split every duty: the owner reviews the bank statement and the bank reconciliation, nobody shares passwords, and electronic payments get their own checks. Stop here before the bank reconciliation itself; next week takes that up. (video, 5 min) (captions: automatic)
• 5 Critical Internal Controls for Owner-Managed Businesses — Doeren Mayhew — an accounting firm's short article on five habits for a lean business: split duties where you can, approve significant transactions, lock up checks and limit software access, review regular reports, and read the bank statement yourself. Match each habit to one of the five components as you read. (reading, 4–6 min)

② The law behind the reports, and its limits

Chapter 8, Section “Follow the sources: COSO's framework and the Sarbanes-Oxley Act” · Session 2, Segment 8, “COSO and the Sarbanes-Oxley Act” · Remember: the Act's internal control reporting is required of public companies, and every control still gives reasonable, not absolute, assurance.

• What Did the Sarbanes-Oxley Act do? — U.S. Securities and Exchange Commission — the SEC's own three-minute history of why Congress passed the Act after large accounting frauds, and three things it changed: an independent board that sets auditing standards and inspects audit firms, a wall between a firm's audits and its consulting work, and rules that hold executives and boards accountable for their company's numbers. The internal control reporting rule is in the chapter, not the video. (video, 3 min) (captions: automatic)
• The Laws That Govern the Securities Industry: Sarbanes-Oxley Act of 2002 — Investor.gov, U.S. Securities and Exchange Commission — the SEC's investor-education summary of the Act in one short section: reforms to strengthen corporate responsibility and financial disclosures and to fight accounting fraud, and a new board to oversee auditors. Read only that section, and keep the year, 2002, as the date to remember. (reading, 2–3 min)

③ Two distinctions to rehearse before the midterm

Chapter 8, Section “Record revenue when it is earned: cash basis versus accrual basis” · Session 1, Segment 3, “Cash basis versus accrual basis” · Remember: revenue follows the work, not the cash, and only temporary accounts are closed.

• Cash vs. Accrual Accounting Explained: Everything You Need to Know — CSI Accounting — a bookkeeping and payroll firm's three-minute comparison, with an invoice sent in one month and paid in the next. Watch it critically: it weighs which basis suits a small business's own books, while financial statements under GAAP use the accrual basis, which GAAP requires. Skip the firm's closing pitch for its own services. This builds on Week 4's work with accrual accounting. (video, 3 min) (captions: automatic)
• Accounting Basics: Permanent versus Temporary Accounts — Bite Size — a four-minute explainer that sorts balance sheet accounts as permanent and revenues, expenses, and dividends as temporary, then walks a purchase and a sale of inventory through journal entries to show which accounts would be closed. Its dollar figures are the video's own, not the bicycle shop's. (video, 4 min) (captions: automatic)

Optional one-stop reference (free online reference)

• Standards for Internal Control in the Federal Government, paragraph OV2.04 — U.S. Government Accountability Office — the Green Book's own page naming the five components of internal control with a one-line description of each; the page before it explains why internal control gives reasonable, not absolute, assurance. Skip the federal requirements that follow. (reading, 4–6 min)

Heads-up (links rot): these point to outside sites that occasionally move or rename pages. If a link ever fails, tell your instructor and use the reference above in the meantime.

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