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Mr. Cat

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ACCT504 Case Study 2

1. Inform the president of any new internal control requirements if the company decides to go public. (7 points)

I would inform the president of the following controls to make the company better. Background checks for employees should be number one to avoid any issues down the line. The idea is to install some type of filters that automatically checks for strange behaviors. The president should also considered,

2. Advise the president of what the company is doing right (they are doing some things well), and also recommend to the president whether or not they should buy the indelible ink machine. When you advise the president, please be sure to reference the applicable internal-control principle that applies. (13 points) the accountant do multiple jobs is not probably a good idea. It sounds like the company is trying to budget themselves to a minimum. At first it sounds like a good idea, but guess what? – We are humans and need a break once in a while otherwise we will go to an extreme where we could overload. It is good to have multitasked persons in your company, but the employer also needs to act and decide when enough is enough.

3. Advise the president of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal-control principle that is being violated along with a recommendation for improvement. (20 points)

the company needs to be more involved and take actions. When an accountant is handling multiple task in order to help the company, something is wrong and if not something is about to go wrong. The account may be able to handle the job but in reality they should only concentrate only on accounting.

Citation
Kimmel, Paul D.. Financial Accounting: Tools for Business Decision Making, 7th Edition. John Wiley & Sons, 02/2013.

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