Essays on Internal Control

Internal Control Failures can be caused by many varying factors, such as, lack of management supervision, low accountability, checks and balances, separation of duties, physical audits, standardized documentation, and approval authority. It is very important for a company to be aware of all of the requirements needed in order to have a smooth functioning business. If a business begins to slack even the slightest it could leave an opening for a failure or fraud to occur. Considering Steinhoff ...

MBC discovered a $1.0 million discrepancy in inventory between what their new computer system tracked and calculated and what their auditors found in a physical inventory count for the year. The discrepancy was corrected, but Accountant A and Accountant B have different opinions as to their findings. In my opinion, Accountant B is correct and MBC will need to review and update its policies on internal control to prevent another discrepancy of this magnitude from occuring again.Accountant A is ...

According to Solomon (2007), internal control is the standardized measures such as reviews, checks and balances, and methods and procedures that an organization institutes with an aim of conducting business effectively and efficiently. Internal controls have five primary roles in roles in an organization such as controlling the organizational environment, risk assessment, information dissemination, and communication, controlling organizational activities, and monitoring progress (Solomon, ...

Internal controls are in place to reduce or mitigate operational risks within an organization. In the past, most organizations adopted policies, procedures and budgets to assist their organization to run smoothly, however, since the large organizational scandals that have taken place at Enron, Tyco International and WorldCom and companies like them, the government has stepped in and created legislation under the Sarbanes-Oxley Act of 2002 which included a regulation for internal controls. Good ...

Internal control is a process that aims to guarantee the achievement of an organization's goals in compliance with laws and regulations, operational effectiveness, and reliable financial reporting. In other words, it involves everything that controls risks to an organization. As a result, they represent several mechanisms that add value to the business and its stakeholders. In order to deliver said value, it is required good governance, management of information and of information and ...

Managing Services deals with all the functions of a business to control its operations, divide responsibility between departments to increase efficiency in business and to reduce cost.Manufacturing operations control all the activities in product making. In this, the work start with raw material and ends with finished product. Manufacturing operations particularly manages choices required by task managers for concurrent production and utilization of an impalpable product. These decisions ...

What is meant by the “internal processes” of a team? Why is it important to manage both the internal processes and external opportunities/constraints of a team? A demonstrated method to enhance your internal processes is to consider an item or administration that you give from the viewpoint of a client. Envision that they are standing outside your association looking in at the different advances required to convey the item or administration to them. Expanding activities. Amplifying ...

Using technologies can further help companies prevent and detect frauds. It is a necessary tool to minimize the risk of frauds that could potentially occur in any type of industry. Due to modern evolution of technologies, it enables many organizations and corporations to analyze large amounts of data to counteract and identify conceivable schemes. Few examples of technologies that could be implemented to prevent bribery and corruption in companies are blockchain, artificial intelligence, and ...

Businesses, whether big or small, play a vital role in the economic development of a community. They serve as the fuel that ignite and keep the engine of economic development running by providing jobs that enable members of the community to earn money.The income that employees earned is used to acquire products and services made by businesses that propel the economic activities to cycle around. Without the presence of businesses in the community, the economy within the area would become ...