Docsity
Docsity

Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity


Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan


Guidelines and tips
Guidelines and tips

Internal Accounting Controls Policy of Tenneco: Ensuring Financial Reporting Reliability, Study Guides, Projects, Research of Accounting

Tenneco's internal accounting controls policy, which includes objectives, minimum requirements, and procedures to provide reasonable assurance of reliable financial reporting. The policy covers transaction authorization, recording, segregation of duties, asset safeguarding, and reconciliation. Annual reviews and monitoring compliance are essential.

Typology: Study Guides, Projects, Research

2021/2022

Uploaded on 09/12/2022

deffstar
deffstar 🇬🇧

4.6

(16)

242 documents

1 / 3

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
1
SECTION 5: INTERNAL ACCOUNTING CONTROLS
Exhibit 5 – Internal Accounting Controls Policy
Policy Number 15-100
SUBJECT: INTERNAL ACCOUNTING CONTROLS
Application: Worldwide Strategic Business Units and Subsidiaries.
POLICY
The Company maintains a system of internal controls sufficient to provide reasonable assurance
regarding the reliability of financial reporting, ensuring the following objectives are met:
1. Transactions are executed in accordance with management's general or specific
authorization.
2. Transactions are recorded as necessary to:
(a) Make and keep books, records, and accounts in reasonable detail to accurately and
fairly reflect the transactions of Tenneco and the disposition of its assets.
(b) Permit preparation of financial statements in conformity with accounting
principles generally accepted in the United States as well as any other criteria
applicable to such statements such as local statutory regulations or other government
regulations.
3. Adequate segregation of duties is maintained. The principal duties to segregate are
transaction authorization, custody of assets, and recording or reporting of
transactions.
4. Assets are safeguarded from loss by intentional acts and unintentional errors.
5. Financial accounts are reconciled to supporting documentation at reasonable intervals
and appropriate action is taken with respect to any differences.
GENERAL
For purposes hereof, the concept of "reasonable assurance" is based on two factors:
1. The cost of control should not exceed the benefits likely to be derived, and
2. The evaluation of costs and benefits requires good faith estimates and judgments by
the management.
pf3

Partial preview of the text

Download Internal Accounting Controls Policy of Tenneco: Ensuring Financial Reporting Reliability and more Study Guides, Projects, Research Accounting in PDF only on Docsity!

SECTION 5: INTERNAL ACCOUNTING CONTROLS

Exhibit 5 – Internal Accounting Controls Policy

Policy Number 15-

SUBJECT: INTERNAL ACCOUNTING CONTROLS

Application: Worldwide Strategic Business Units and Subsidiaries.

POLICY

The Company maintains a system of internal controls sufficient to provide reasonable assurance regarding the reliability of financial reporting, ensuring the following objectives are met:

  1. Transactions are executed in accordance with management's general or specific authorization.
  2. Transactions are recorded as necessary to:

(a) Make and keep books, records, and accounts in reasonable detail to accurately and fairly reflect the transactions of Tenneco and the disposition of its assets.

(b) Permit preparation of financial statements in conformity with accounting principles generally accepted in the United States as well as any other criteria applicable to such statements such as local statutory regulations or other government regulations.

  1. Adequate segregation of duties is maintained. The principal duties to segregate are transaction authorization, custody of assets, and recording or reporting of transactions.
  2. Assets are safeguarded from loss by intentional acts and unintentional errors.
  3. Financial accounts are reconciled to supporting documentation at reasonable intervals and appropriate action is taken with respect to any differences.

GENERAL

For purposes hereof, the concept of "reasonable assurance" is based on two factors:

  1. The cost of control should not exceed the benefits likely to be derived, and
  2. The evaluation of costs and benefits requires good faith estimates and judgments by the management.

Our system of financial reporting internal controls, at a minimum, provides for the following:

  1. A clear definition and communication of the delegation of authority and responsibility beginning with the Board of Directors and continuing successively to each level of management to manage risks and keep the business operating.
  2. Written policies and procedures that help ensure management directives are carried out, including a system of authorization, record keeping, and reporting to provide reasonable control over assets, liabilities, revenues, and expenses.
  3. Monitoring the effectiveness of and compliance with the prescribed policies and procedures.

PROCEDURE

  1. A copy of this policy and procedure will be furnished to each senior member of operating management and to all accounting personnel.
  2. The Corporate Controller is responsible for the development and, as determined to be necessary or appropriate, documentation of corporate policies and procedures necessary for compliance with this policy, including necessary distribution and consultations to ensure employee knowledge and awareness.
  3. At least annually, the Controller of each strategic business unit will review the unit’s policies and procedures pertaining to internal accounting controls and make any changes necessary to maintain at least the minimum system of controls prescribed above.
  4. Any employee who has any questions regarding this policy or its application should discuss the matter with the Chief Financial Officer of Tenneco.

MONITORING COMPLIANCE

  1. It will be the responsibility of the Chief Financial Officer of Tenneco to ensure proper dissemination of and compliance with this policy and procedure.
  2. The Controller of each strategic business unit and other appropriate employees, as designated by the Chief Financial Officer of Tenneco, will be required to confirm compliance with this policy at least annually. It will be the responsibility of the Chief Financial Officer of Tenneco to obtain and review these statements at least annually and to report to the Audit Committee of the Board of Directors of Tenneco the results of such reviews and compliance with this policy and procedure.