Internal control Essays & Research Papers

The definition I found to describe internal control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. Internal control is also responsible for making sure there is not any fraud in the business. Basically, to me this means that internal control is what keeps things flowing smoothly and correctly. There are two main goals of internal control. The first is to keep the company safe from any...

Internal Controls XACC 280 Crystal Riley Sanford September 10, 2010 Instructor Glenn Dakin Internal Controls Internal controls are the measures a company takes to do accomplish two primary goals; protect their assets from employee theft, robbery and unauthorized use. Internal controls are also used to increase accuracy of company financial information, reducing the risk of errors (accidental) and irregularities (intentional) (Weygandt, 2009). Sarbanes-Oxley Act of 2002 The...

Internal Controls Internal controls are all the procedures and measures companies put in place in order to achieve two specific goals related to accounting (Kieso, Kimmel, & Weygandt, 2011). The first goal is the protection against loss of assets from various sources such as theft or accounting error (Kieso, Kimmel, & Weygandt, 2011). Companies, clients and shareholders must have assurance that there is suitable control over all business assets like inventory and bank accounts all the...

Mission Statement: Vineyard Vines is dedicated to bringing new and creative ideas to the market place, both in our product offerings as well as our marketing events. We will continue to develop our unique brand positioning, to maintain and grow our solid brand recognition, and to adhere to high quality design standards. Because everyone wants to have fun every day, Vineyard Vines will continue to offer something for everyone with fun always in mind. History: Founded in 2010, Vineyard Vines...

Generally, every organization’s performance could be enhanced if they have a sound internal control system. Internal control sys has two subcategories: A) Control environment B) Control procedures and policies @ control activities Control environment is abt attitude of board n mgt, whether they have integrity(honesty) and value the importance of running a sound internal control system. So, if their attitude is good, they will raise awareness and foster good attitude among ppl in the...

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Internal Control Evaluation The accounting firm has completed its evaluation of LJB’s system of internal controls. The accounting firm was hired to do this evaluation because LJB have plans on going public. First thing we must do is review if there are any new rules or regulations that will affect a private company changing to a public company. Second, LJB must understand that its internal control system will be enforced by the Sarbanes-Oxley Act of 2002. Under the Sarbanes-Oxley Act, United...

What is internal control and why is it important The American Institute of Accountants first defined the term internal control in 1949, followed by further clarifications in 1958 and 1972. In 1977 publicly held companies came under legislation to adequately implement controls to protect their financial information. A report by the Committee of Sponsoring Organizations in 1992 and the Sarbanes-Oxley Act of 2002 are more recent documents defining internal controls.( Bishop, 1991,p.117-123;...

Chapter 5: Internal Control over Financial Reporting 1. Internal control is a process designed to guarantee the achievement of the objectives of reliable financial reporting, compliance with laws and regulations and ineffective and inefficient operations. FALSE 2. Auditing standards require that the auditor exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit. TRUE 3. If internal controls are not enforced they are...

In order for a business to be successful and operate with in the parameters of the law it must be organized and have a system or systems in place that allow operations to performing at their peak. Internal controls are just that, controls designed to ensure that a company is able to maintain accurate financial reporting, efficient operations, and operating within laws and regulations applicable. Protecting itself and its assets against theft and unauthorized use, acquisition, or disposal is also...

Internal Controls XACC/280 April 7,2013 Axia Internal Controls Internal controls are put into place to safeguard a company’s assets and to promote the accuracy of their accounting records. There are two primary goals of internal controls. The first goal of internal controls is to safeguard it’s assets from employee theft, robbery, or unauthorized use. When there is a large some of money there is temptation from employee’s to take some of it. Many employees believe they are underpaid...

Hewlett-Packard | Internal Controls | XACC 280 week 8 assignment | | Stevan | 1/29/2011 | [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] | All people are not honest. Even when you are dealing with people from your church, school, or even friends you have known for years, there is the possibility...

UNDERSTANDING INTERNAL CONTROLS A Reference Guide for Managing University Business Practices Understanding Internal Controls Table of Contents INTRODUCTION .................................................................................................................................................................1 OBJECTIVES...

Running head: INTERNAL CONTROLS Internal Controls All companies have a need and responsibility to track their financial positions. Depending on the size of the company, those tracking systems or accounting systems, can be very simple or very complex. "An accounting system is a set of records, procedures, and equipment that routinely deals with the events affecting the financial performance and position of the entity (Shiraz Noordin, 1997)." The accounting records are kept to measure...

FNSACC50A Implement & Maintain Internal Control Procedures ASSIGNMENT 1. Who is ultimately responsible for the corporate governance of an organisation? The Board of Directors 2. Who else plays a part in corporate governance? Shareholders, auditors and other stakeholders. 3. Who are the stakeholders? A person, group or organisation that has interest or concern in an organisation. 4. List the corporate governance requirements a company needs to adhere to: The company has an...

Question 1 a) Select two companies where inadequate internal control have resulted in disastrous effects on the organisation or exposed it to heavy losses. Research the facts of the failure and report on the facts and the losses suffered. In your report, include suggestions for changes to operations (internal controls) that could have prevented the final outcome. Where could you find a list of these internal controls and how are they documented? Examples of companies include: Coles...

"No matter how sophisticated a system of internal control is, its success ultimately requires that you place your trust in certain key personnel" Introduction Within any organisation a high level of trust has traditionally been placed in management and key personnel. This has led to some quite public failures in corporate governance and internal controls – Enron, WorldCom, HIH insurance etc… A lack of effective personnel controls can lead to a multitude of organisation problems such as...

 Internal Controls XACC 280 By University of Phoenix Professor This paper will discuss the internal controls and how they work in business. I will shed some light on the organizations financial and business policies, process and procedures. The purpose of these internal controls is to protect the company’s resources against fraud, misappropriate funds and most important...

Case Study 2 – Internal Control 1. Inform the president of any new internal control requirements if the company decides to go public Each of the five components of an internal control system is important. Let us focus on the control activities. These activities are the backbone of the company’s efforts to address the risks it faces, such as fraud. The specific control activities used by a company will vary depending on management’s assessments of the risks faced. The six principles of...

Case Study 2 – Internal Control TO: LJB Company President FROM: Andrea Johnson DATE: February 8, 2013 SUBJECT: Internal Control It is with great pleasure that we can provide you information and advisement on internal controls that will assist LJB Company with going public. We understand that you have communicated your concerns and expect that this report will assist you with deriving conclusions. This report will: 1. Inform you of any new internal control requirements in reference to...

Accounting & Finance Faculty FNS10 Financial Services FNSACC506A Implement and Manage Internal Controls Semester 1 2014 ASSESSMENT TITLE Assessment 1 – Assignment 1 ASSESSMENT CONDITIONS/INSTRUCTIONS Take home assignment – Questions and Research Aids to be supplied by college: None. Aids to be supplied by student: None Prescribed Text book(s) Standard Dictionaries Bilingual Dictionaries Technical Dictionaries Programmable Calculators Non-programmable...

Internal control is the process implemented and maintained to provide reasonable assurance about the achievement of the entity’s objectives. It covers the company’s resources, systems, procedures, culture and structure. It very important for a company to possess and the lack of it can result in detrimental consequences. One example to showcase this is the famous study of “McKesson & Robbins”. Founder Philip Musica adopted a fake name and started the pharmaceutical company. He faked his...

 The Development of Hotel X: A World Class Resort Prepared for: Patrick Berry President, LBJ Company Prepared by: Alexander Scott Consulting LLC April 6, 2014 ACCT. 504-68173 – Financial Accounting Table of Contents: History…………………………………………………….3 What You Are Doing Right..……………………..4 Areas for Improvement…………………………...4 Related Regulations…………………………………7 Internal Controls Definitions……………………7 Bibliography……………………………………………10 History: LBJ...

Internal Controls XACC/280 Whenever having a company, he or she must have the right aspects so that business can run as smoothly as possible. The existence where not having the company together as supposed to, then there are problems that can follow. Internal control is the safeguard of the assets and the accuracy along with able to rely on he or she’s accounting records and the guide to success is making sure that he or she follows the control principles. The two sentences before this is...

SUMMER-2015 Get solved assignments at nominal price of Rs.120 each. Mail us at: subjects4u@gmail.com or contact at 09882243490 Master of Business Administration- MBA Semester 3 MF0013–Internal Audit & Control-4 Credits (Book ID: 1733) Assignment (60 Marks) Note: Answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60. Q1. Describe & explain the term auditing. “Personal qualities of an auditor...

TABLE OF CONTENTS 1.0 INTRODUCTION 2 2.0 Role of internal control 2 2.1 Management: 2 2.2 Board of Directors: 3 2.3 Auditors: 3 2.4 Staff and junior managers 4 3.0 NEW RULES OF INTERNAL CONTROL 4 4.0 THE GOOD AND THE BAD 10 5.0 RECOMMENDATIONS 12 6.0 REFERENCES 14 1.0 INTRODUCTION Internal control is defined as a process affected by an organization's structure, work and authority flows, people and management information systems, designed to help the...

Objective: • To critically analyze the • To evaluate the importance of having Internal Control procedures within ‘The Bargain Centre’ Aims: • To investigate the number of different internal control procedures used within ‘The Bargain Centre’ • To gain knowledge of how the different internal control procedures help secure the business against theft and embezzlement etc. Data collection: In order to carry out my research on Internal Controls within ‘The Bargain Centre...

ACC 542 Week 4 Individual Assignment Internal Control and Risk Evaluation To purchase this material click below link http://www.assignmentcloud.com/ACC-542/ACC-542-Week-4-Individual-Assignment-Internal-Control-and-Risk-Evaluation For more classes visit www.assignmentcloud.com Management at Kudler Fine Foods has reviewed the flowcharts prepared in Week Two and is requesting information on controls that will be required. • Prepare a 750- to 1,100-word brief: • Analyze the risks in the...

Lecture note on monitoring business and accounting systems. ------------------------------------------------- internal control systems and internal controls An internal control system is the whole system of controls, financial and otherwise, established by the management in order to * Carry on the business of the enterprise in an orderly and efficient manner, * Ensure adherence to management policies, * Safeguard the assets and secure as far as possible the completeness and...

Accountant in Business (FAB/F1) December 2011 to January 2013 This syllabus and study guide is designed to help with teaching and learning and is intended to provide detailed information on what could be assessed in any examination session. THE STRUCTURE OF THE SYLLABUS AND STUDY GUIDE Relational diagram with other papers This diagram shows direct and indirect links between this paper and other papers preceding or following it. Some papers are directly underpinned by other papers. These links...

Student Notes aat QCF Level 4 Internal Control and Accounting Systems STUDENT NOTES 1 Contents Section 1 2 3 4 Introduction and Assessment Outcomes and Criteria Internal Controls and Fraud Finding weaknesses and making recommendations Business English Report Plan Deadlines Report Guide Other requirements page 3 6 9 12 5 6 7 8 9 18 19 25 27 38 2 1 Introduction and Assessment What is ICAS Internal Control and Accounting Systems (ICAS) requires students to write a...

Chapter 1 Auditing and Internal Control Review Questions 1. What is the purpose of an IT audit? Response: The purpose of an IT audit is to provide an independent assessment of some technology- or systems-related object, such as proper IT implementation, or controls over computer resources. Because most modern accounting information systems use IT, IT plays a significant role in a financial (external audit), where the purpose is to determine the fairness and accuracy of the financial...

Obtaining an understanding of internal control allows auditor's to identify the types of material misstatements that could occur in the financial statements, consider the factors that affect the risk of material misstatements, and design substantive tests. An auditor obtains the understanding from researching the clients business. An auditor will take inquires from management and personnel, observe client activities and operations, walk-through the business, and inspect client documents and...

LJB Company’s Internal Control Recommendation Report February 2012 Prepared for: LJB Company President Finance Department Prepared by: Cauretta Bell Recommendation Report 2012 It is my immense pleasure to report and evaluate the findings of the internal control procedures to the President of LJB Company regarding recommended changes for the organization to utilize internal control requirements. We will provide useful recommendation so that LJB Company will be fully prepared to go...

Internal Control and Accounting Systems Learning Area Overview Welcome to this learning area overview for Internal Control and Accounting Systems, prepared by AAT. In this overview we’ll explain what Internal Control and Accounting Systems is all about, and how it fits into the bigger picture of the AAT Accounting Qualification. We’ll explore the main topics you can expect to cover, and how the knowledge and skills you’ll pick up will be of practical use to you in the workplace. Finally, we’ll...

THE INTERNAL CONTROL SYSTEM The internal control system includes all the strategies, policies and procedures adopted or instituted by the management of an entity to assist in their objective achieving as far as practicable, the orderly and efficient conduct of the business and includes adherence and compliance to management policies and applicable laws and regulations; the safeguarding of assets; the prevention and detection of fraud and error, the accuracy, reliability and completeness of the...

Introduction: An internal control system refers to the process by which organizations maintain environments that encourage incorruptibility and deter fraudulent activities by managements and employees. Internal control systems are evaluated during the planning phase of an independent financial statement audit. This is the system is also known as detection and prevention of fraud in an organization. The “Questionnaire Method” is one of various techniques to measure internal control system of any...

Justification for an Internal Control System Organizations exist to carry out their set goals and objectives. To achieve these goals, they must have a set of rules that direct their efforts toward the achievement of these goals and objectives. With this the need for a system of internal controls comes in. An internal control is a set of policies and procedures put in place by the management of an entity to help it achieve its goals. “Internal control is a set of rules that provide...

Internal Control Issues 1.List what you believe should have been the three to five key internal control objectives for Goodner’s Huntington sales office. * Assets Safeguard The padlock and other some security are used as a physical protection of Goodner’s inventory from stolen by unauthorized person. * Authorization of Transaction Goodner’s policy said that the new customer required an approval of the sale manager for the credit sale. The objective of this policy is to...

 Running Head: EVALUATING INTERNAL CONTROLS Evaluating Internal Controls Internal Control Systems – ACC/544 Stephanie Booth Robert Cornett University of Phoenix September 29, 2014 Evaluating Internal Controls An organization’s internal controls are comprised of five components, which include: the control environment, risk assessment, control activities, monitoring, and information and...

To: President of LBJ Re: Internal Controls My Recommendation Impact of going public Public companies, as the result of the passing of Sarbanes Oxley Act of 2002, are necessary to document their controls, assess the documented controls and have their external auditors examine their testing of controls and note down a report about the efficiency of controls surrounding financial reporting. As a result, there will be supplementary work on designing, testing and auditing of controls if you...

Small Business Internal Controls Entrepreneurs and small owners often forget a very important part of operating a business, internal controls. In fact, poor internal controls and dishonest employees were listed as the reason for 30% of small commercial business failures. (Hrncir, 223) Even with this knowledge many small businesses do not have an understanding of the intent and effectiveness of internal controls. An internal controls system is the written and spoken set of rules and...

Internal Control Internal control is an integral part of an organization’s governance system and ability to manage risk, which is understood, effected, and actively monitored by the governing body, management, and other personnel to take advantage of the opportunities and to counter the threats to achieving the organization’s objectives (IFAC 2012). Arad & Philee (2013) define internal control as “the integration of the activities, plans, attitudes, policies, and efforts of...

INTERNAL CONTROL AND RISK EVALUATION PAPER ACCOUNTING 542 INTERNAL CONTROL AND RISK EVALUATION PAPER Many businesses are concerned with information technology risks. Many organizations are concerned with different types of risk and attempt to control risk as they are assessed. In order to control risk, organizations must create control environments that set the tone of employee awareness and promote operational efficiency. One attempt to control risk is through risk assessment. The...

RUNNING HEAD: Internal Control for Inflows Internal Control for Inflows ACC/ 544 Internal Control for Inflows Internal controls are important to a business. The internal controls provide a safeguard against errors in the accounting system as well as the detection and prevention of fraud. With the inflows of the company come many risks that need to be considered. The ways in which cash, sales, accounts receivable, inventory, and production are handled within the company are different...

Case Study Project What is the purpose of auditing? Describe the relationship between internal controls and the audit process. Answer The purpose of an audit is to provide financial statement users with an opinion by the auditor on whether the financial statements are presented fairly, in all material respects, in accordance with the applicable financial reporting framework. An audit also enhances the degree of confidence of intended users in the financial statements. Financial audits...

CHAPTER TWO: LITERATURE REVIEW 1.9 Introduction 2.0 Objectives of an internal control system 2.1 Identify customizable components 2.2 To identify factors that promotes the effective implementation of internal control system. 2.3 Challenges associated with internal control systems. 2.4 Limitations of internal controls 2.5 To identify the top rated types of internal controls. CHAPTER...

Internal control systems As defined in Paragraph 4(c) of ISA 315, internal control is “the process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives with regard to reliability of financial reporting, effectiveness and efficiency of operations, and compliance with applicable laws and regulations.” It includes all the...

Justification for an Internal Control System Organizations that do not have the proper internal controls tend to deteriorate over time. Therefore, companies should incorporate effective internal control systems to accompany other risk management approaches like insurance and risk portfolio. Internal Control Systems can provide an additional reference tool for organizations to identify and assess operating controls, financial reporting, and regulatory compliance processes and to formulate...

ACCT420 Auditing Test Three – Out of Class Portion Due Monday, April 30, 2012 1. Listed below are four interbank cash transfers, indicated by the letters a, b, c and d, of a client for late December 20X1, and early January 20X2. Your answer choice for the next two questions should be selected from this list. For each of transfers a through d indicate whether cash is understated, unaffected, or overstated by the transfer and provide a brief example of what could cause the situation in...

Jurgen Skembi Homework5 Internal Control Audit Standards a. For what purposes should an auditors’ understanding of the internal control components be used in planning an audit? An auditors’ understanding of the internal control components should be used for 3 reasons: a) To identify the potential misstatement that might occurs b) To identify the factors that affect the risk of material misstatement c) To influence the design of substantive procedures b. What is...

Internal Controls Paper FIN/324 University of Phoenix November 2, 2005 Internal Controls Paper When it comes to the internal controls of firms and enterprises, executives are constantly keeping a close look on the accuracy and effectiveness of these controls along with seeking ways to better them. According to COSO (2004) the implementation of internal controls helps guide companies in reaching towards their profitability goals, the accomplishment of their mission statement, and helps...

Introduction of Dentistar and the problem Dentistar, Inc. was formed in 1985 to provide dental and orthodontic services to subscribers of their prepaid dental plans. This report examines the western region’s office, located in Los Angeles, and its issuance of excessive manual checks that resulted in multiple bank overdrafts. Results indicate that only minimal efforts have been made for internal control measures in this office and companywide, and that weaknesses have allowed the Finance...

ACCT301 Week 2 Homework 1. In two to three paragraphs, describe the Sarbanes-Oxley Act and why it is important to the accounting profession. (15 points) The Sarbanes-Oxley Act was passed in 2002 by Congress after a series of scandals involving companies such as Enron, WorldCom, and Tyco. This was passed because of shady transactions and misrepresented financial data which caused shareholders to lose millions of dollars and their trust in investing in public companies. It was passed to...

Published Article-Sox Institute 12/2008 The Essence of Internal Control A statement on policy and procedures issues as they relate to managements views and /or findings with regard to OMB A-123 audits. Writing position papers on justification of actions taken has raised some questions about control. There seems to be a shift in the mind set of managers now that Section 404 of Sox's (documentation) has really kicked in with compliance performance of the financial managers...

| LJB Company | Memo To: The President! From: Mark Buchanan CC: Date: 11/22/2011 Re: Internal Control Evaluation Going Public: All publicly traded companies in the United States are required to maintain an adequate system of internal controls per the Sarbanes Oxley ACT of 2002 or SOX. Corporate executives and boards of directors must ensure that these controls are reliable and effective. In addition independent auditors must attest to the adequacy of the internal control system....

Scenario E4-5 A) List the weaknesses in internal control over cash disbursements. 1) Checks are not pre-numbered. When checks have no numbers, no one will know if a check is misplaced or stolen. 2) Too many people are authorized to sign checks. The treasurer should be the only person authorized. 3) Checks are not being kept in a safe area. A filing cabinet, even a locked one can be easily pried open and checks stolen. 4) Segregation of duties is not being done, the purchasing agent...

Internal Control System Checklist ACC/544 Monday December 03, 2010 Dr. YouKnew Abstract Internal control systems are purposed to aid in managing an array of risks, while monitoring the integrity and reliability of operational and financial data. Internal control systems ensure the proactively of audits, at the same time as serving to ensure that policies and procedures are enforced to protect the company’s financial information, limiting accounting inaccuracies and fraud. The...

Case Study 2: LJB Company’s Internal Controls Michael Del Toro FI504 - Accounting Abstract This paper shall focus on the criticalities involved in LJB’s transactions and how it may implement internal controls to the business processes while increasing the accountability of individuals involved in its ‘lean business process.’ With the advent of the Sarbanes-Oxley Act and its repercussions to the manner in which businesses must prevent fraud (both external and internal) to not misrepresent...

Justification for an Internal Control System Many organizations use the insurance or portfolio approach to manage risks associated with business activities, whereas others explore the benefits of an internal control system. A sound internal control system is vital to an organization's risk management procedures. The following paragraphs will describe the insurance and portfolio approaches, and explain the benefits to installing an internal control system as a more beneficial alternative....

Kudler Fine Foods - Internal Control and Risk Evaluation Internal controls are an integral part of a company to provide a foundation for a safe, sound and successful organization. According to COSO, “the three primary objectives of an internal control system are to ensure efficient and effective operations, accurate financial reporting and compliance with laws and operations” (COSO, 1999). Proper internal control programs can help Kudler’s managers to make decisions, progress evaluations and...

A system of internal control refers to the process by which organizations maintain environments that encourage incorruptibility and deter fraudulent activities by management and employees. An organization’s components of internal control are evaluated during the planning phase of an independent financial statement audit. The results of the evaluation directly influence the auditor’s level of detailed testing. To reduce detailed testing, and perhaps the audit fee, organizations implement common...

V. Internal Control & Banking Relationship Basic Controls Internal control refers to a system of financial checks and balances designed to minimize errors or misappropriation of assets, maximize the detection if it occur and protect the association overall. It is the treasurer’s responsibility to safeguard the assets of the association by ensuring these controls are in place. One of the basics of good internal control is that no one person handles all aspects of any financial...

| LJB Company Internal Control Report Review | October 2, 2011 | [Type the document subtitle] | The management of LJB Company is responsible for establishing and maintaining adequate internal control over financial reporting. This internal control system is designed to provide reasonable assurance to the company’s management and board of directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well...

Internal Control Risks Identified in Apollo Shoes Assessing control risk is the process of evaluating the design and operating effectiveness of a company’s internal controls as to how it prevents or detects material misstatements in the financial statement assertions of management (Hayes, Dassen, Schilder, & Wallage, 2005). The conclusion reached as a result of assessing control risk is referred to as the assessed level of control risk. When assessing controls the auditor looks for...

October 1, 2011 I was asked to give my recommendations on LJB Company’s internal control system before the company decides to go public in the future. Based on my review of the information that I have been given, the following are my recommendations for new internal controls: 1. Establishment of Responsibility 2. Segregation of Duties 3. Human Resources Control 4. Independent Internal Verification 5. Physical controls It is good to see that LJB recognizes the efforts of...

A.)Identify any weaknesses in the internal controls described. Discuss the implications of each weakness you identify. - The computer automatically generates the purchase of the raw material when raw material falls below 70% of previous month’s usage. Someone one should physically double check the raw materials quantity before ordering as there could be some human error involved in putting the data in. Also the assumption here is that last month’s sale would be similar to the current month...

Case Study 2 – Internal Control A review of policies and procedures for LBJ Company has been conducted, and there is a distinct lack of internal control that must be addressed in order for the company to go public. Internal control is identified as: “the process designed to ensure reliable reporting, effective and efficient operations, and compliance with laws and regulations” (Edwards, 1994). Additionally, to attract prospective investors, LBJ Company must follow the guidelines identified by...

Internal Control and Risk Evaluation Accounting Information Systems 542 October 10, 2011 Analyze the risks in the systems that your team analyzed An Accounting Information System is an integral part of the new design of Kudler’s computer system. Accountants do not necessarily need to understand completely how computers process data of the accounting application, but it is essential for them to understand the flowcharts and documentation that shows how this processing works. The purpose...

CHAPTER ONE INTRODUCTON In every well-organized concern there exists a large number of ways and means where a check is imposed on the accuracy of the executive work. These ways and means are called the system of ‘internal control (I.C).’ (D.P. Jain, 1993). Management not the auditor must establish and maintain the entity’s of control. (Alvin J., James K., W. Morley, Ingrid B., 2000). According to Spicer and Pegler, “internal control is best regarded as indicating the whole system of controls,...

Using Computer-Assisted Audit Techniques to Support Audit I. Executive Summary Nowadays, the use of computers dominates in most of the business world; auditors too have recognized that the power and speed of computers can greatly assist them in their work. The term “computer-assisted audit techniques” (CAAT) is used to denote computer techniques that auditors can utilize to help them complete their audits in a more effective, efficient, and timely manner. Use of the prefix...

Justification for an Internal Control System Ginger Lankford Internal Control Systems ACC544 Robert J. Cornett, MBA October 4, 2010 Justification for an Internal Control System Businesses need an efficient and cost-effective internal control system even with insurance and a portfolio approach control in place. Insurance is necessary and the portfolio approach is very effective but is more reactive than preventive. Internal control sets the foundation to ascertain reasonable...

 Checklist for Evaluating Internal Controls ACC 544 CHECKLIST FOR EVALUATING INTERNAL CONTROLS Introduction “In response to the number of major corporate accounting scandals rocking the financial world (e.g., Enron, WorldCom, Xerox, KMart, etc.), on July 30, 2002, Congress passed the most wide-sweeping financial reporting legislation since the 1930s (when it established the Securities and Exchange Commission). The Sarbanes-Oxley Act is intended to...

Pepsi Internal Control Procedures Pam Sharratt XACC/210 April 10, 2013 Cito Vanegas Pepsi Internal Control Procedures The Pepsi Co. has many shareholders that they have to answer too when certain things just do not seem to add up. They have different teams of management to oversee every area of operation and to make sure the company is running effectively and gaining the best profit possible. Like other companies over the last few years they have had their ups and downs in certain areas....

Internal Controls Your Name XACC/280 Date Instructor Name Internal Controls Internal controls are an essential asset to any company that wishes to maintain their company’s security and accuracy. These controls help to protect the assets belonging to a company from unforeseen events such as employee theft, robbery, or any sort of unauthorized use (Weygandt, Kimmel, & Kieso, 2008). They also create the opportunity for accounting records to be more accurate and reliable by limiting the...

EXECUTIVE SUMMARY This paper will evaluates the role of information technology and how it affects internal audit process in banking industry. The study will also stresses on how IT affects internal control (control environment, risk assessment, control activities, information and communication and monitoring) and provides guidelines and best practices in evaluating techniques available to effectively perform auditing tasks internally. It will addresses how technology, Information system (IS)...

 Justification for an Internal Control System ACC 544 Justification for an Internal Control System Introduction According to A. A. Gramling in the Encyclopedia of Business and Finance, internal control can be described as “any action taken by an organization to help enhance the likelihood that the objectives of the organization will be achieved.” There are several approaches to risk management in an organization – the portfolio approach and the use of insurance are...

Checklist for Evaluating Internal Controls ACC/544 April 29, 2013 Christine Errico Checklist for Evaluating Internal Controls Internal controls are methods a company implements to safeguard and protect the company in its day-to-day operations as well as its financial information. To ensure these controls are effective and performing properly a company must evaluate these controls. In performing this evaluation a company should use the three phases of the control evaluation. These...

Internal Controls for Local Government A Training Presentation for City of Tampa’s Leaders Training Objectives What you should know after this class: • • • • • Types of risk Who commits fraud and why Internal controls - who needs them 5 internal control components What you can do! 2 What are Internal Controls? To put it simply, internal controls are an exercise of common sense. You are practicing good internal controls when you? • Balance your checkbook • Keep your ATM/debit...

Otilia Moorehead-Floyd XACC 280 May 22, 2011 Kevin Hickey The two primary goals of an internal control system are to safeguard assets and manage resources. This action by the organization, reasonably ensure that their specific goals and objectives will be met within compliance. This system consist of policies, measures and procedures designed to assist management with protecting the organization against waste, preventing and detecting fraud, inconsistencies, inadequacy,...

Chapter 1—Auditing and Internal Control TRUE/FALSE 1. Corporate management (including the CEO) must certify monthly and annually their organization’s internal controls over financial reporting. ANS: F PTS: 1 2. Both the SEC and the PCAOB require management to use the COBIT framework for assessing internal control adequacy. ANS: F PTS: 1 3. Both the SEC and the PCAOB require management to use the COSO framework for assessing internal control adequacy. ANS: F PTS: 1 4....

Justification for an Internal Control System ACC/544 December 2, 2013 Justification for an Internal Control System The internal control system has been used since the company was in need of the system and until this day it has been working to its fullest potential. Internal control plays an important key in making sure that the accounting information, financial data, meeting the targets, and ensuring that the management policies are getting followed. There are two elements in making an...

Internal Cash Control Iasia Goodson ACC/220 June 27, 2010 Jaclyn Strauss Internal Cash Control The weaknesses in the scenario E4-5 are huge. The first one is the fact that the company checks are not prenumbered, how will you keep track of what check was written and what it was written for. Another weakness would be that the purchasing agent and the treasurer are authorized to issue checks that are kept in an unlocked file cabinet. There is so much room for theft here; as...

Task 3: Internal control 1. What do you think is the primary problem at the Sunshine Center? There where no financial reports or summaries of the cash flows. Probably, Barb wasn’t fare about the payments. Because there was no financial report it was not clear where all the money went to. 2. Why is accountability important to the Sunshine Center Committee? The director? Cli
ents of the Sunshine Center? Church members? It is so important to the committee so they can check if...

Justification for an Internal Control System ACC/544 April 22, 2013 Christine Errico Justification for an Internal Control System Over the past years many organizations have fallen because of inadequate financial reporting and ineffective controls. To overcome this dilemma, the creation of the Sarbanes Oxley Act (SOX) of 2002 requires corporations to take full control over its financial reporting and accounting by placing internal controls within its organization. Internal controls not...

An Investigation of Auditor Decision Processes in the Evaluation of Internal Controls and Audit Scope Decisions 1. Introduction Over the past decade numerous studies have focused on auditors' judgments. With few exceptions these studies have found that when auditors are given the same task, they frequently make different decisions.' This result has been obtained for relatively simple tasks (e.g., Joyce [1976]) and relatively complex tasks (e.g., Reckers and Taylor [1979] and Mock and...

Module 7 summary Information technology auditing Module 7 looks at the impact of IT on internal auditing and the changing field of IT auditing. You are introduced to two frameworks that assist auditors with the evaluation of IT controls. The use of such controls is outlined, especially as they apply to computer communications, networking, and end-user environments. The module concludes with a look at the challenges of auditing in this environment where emerging technology is a constant....

 Analysis of LJB Internal Control Procedures and Recommendations Table of Contents Introduction 3 Internal Controls Before Going Public 3 Correct Internal Control Procedures 4 Internal Control Discrepancies 4 Indelible Ink Recommendation 6 Summary 6 Works Cited 8 Analysis of LJB Internal Controls and Recommendations Introduction Assigned to review the internal control procedures...

Claudine Perez ACC 340 Final Examination 1. The essential steps in performing a systems study are (in order of occurrence): a) Analysis, design, implementation and initial operation, follow‑up b) Design, planning, follow‑up, analysis, and implementation c) Planning, system specification, analysis, production, implementation d) Planning, analysis, design, implementation, and follow‑up 2. Which of the following is intended to solve the problem that financial data used in one...

The internal control system should be designed to detect and prevent fraud, errors and omissions, and material misstatements, but it can only provide reasonable assurance that the financial statements are free from material misstatements. The best designed internal control system will not prevent management override or collusion. The internal controls system is only as good as the management support behind the system; this includes training employees and actively monitoring the controls....

E4-5 The weaknesses in the internal control over cash disbursements are, there should be only one person in charge of writing the checks for each task, and there should be numbered checks for both people so that the funds spend can be tracked easier, the cabinets were the checks are stored should be two locked cabinets, one for each person who writes the checks. Memo: I would recommend that to have a better control over money paid and items purchased, that you start having numbered...

Internal Control Evaluation Every business should take the steps necessary to ensure that its internal controls are functioning effectively and efficiently. It is important to have accountability at every level of a business. Creating a checklist to evaluate internal controls will support the business in this effort. According to Louwers, Ramsay, Sinason and Stawser (2007), an internal control questionnaire aide an auditor in gathering evidence about the control environment and accounting...

Ethics in Corporations Lowe’s Home Improvement is a chain of retail home improvement based in the United States. It was founded in 1946 in North Wilkesboro, North Carolina. Lowe’s Home Improvement has expanded internationally into Mexico, Canada, and joint venture with Woolworths Limited in Australia. Lowe’s Home Improvement ranked 54 in Fortune 500 for 2012, decreasing four spots in 2011 ("Cnn money," 2012). Lowe’s Home Improvement is the second largest retail home improvement chain, behind...

CONTENTS 1. EXECUTIVE SUMMARY 2. INTRODUCTION     Literature Review Global Oil & Gas Industry Overview Indian Oil & Gas Industry Overview Company Overview (ONGC) 2 4 6 6 20 23 24 26 28 38 39 40 41 3. INTERNAL CONTROL & INTERNAL AUDIT  Internal Control  Internal Audit  Standards on Internal Audit 4. PROJECT PROFILE  Objectives  Research Methodology 5. LEARNINGS & OBSERVATIONS  Learnings        Audit Scope & Coverage Organisation Structure of IA Department Audit planning &...

Group 3 1. Why did accounting fraud occur at WorldCom? Fraud occurred at WorldCom for a variety of reasons. The senior executives had unchecked power because the board of directors were only figure heads, the ethics hot-line was nonfunctional, and in internal audit department did report to the appropriate link in the corporate chain to minimize fraud. These reasons, combined with a poor company culture, created the environment where fraud was able to become an acceptable business process....

Chapter 10 Section 404 Audits of Internal Control and Control Risk  Review Questions 10-1 Management typically has three broad objectives in designing an effective internal control system. 1. Reliability of Financial Reporting Management is responsible for preparing financial statements for investors, creditors, and other users. Management has both a legal and professional responsibility to be sure that the information is fairly presented in accordance with reporting...