Controls for Outflows Learning Team A ACC/544 June 29, 2015 La Ron Roach Controls for Outflows Misstated expenses and costs have been listed as common reasons for financial statement restatements according to a report issued by the Government Accountability Office (Louwers et al, 2007). The improper recording of costs and expenses are due to errors as well as fraud. To prevent errors and fraud, proper controls for outflows should be performed. This proposal seeks to provide recommendations
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with SOX, the audit firm was not required to have, nor was it engaged to perform an audit of Koss’s internal control over financial reporting. The audit did include consideration of internal control over financial reporting as a basis for designing audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Koss’s internal control over financial reporting. The following excerpts are
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Running head: Internal Control and Risk Evaluation Internal Control and Risk Evaluation The purpose of this brief is to identify and analyze possible risks, internal control points, design internal controls, evaluate the application of internal controls and discuss other outside controls, that Kudler Fine Foods may need to upgrade the computer systems. Analysis of Risks of Computer Systems After reviewing the previous flowcharts it is recommended that Kudler Fine Foods
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the internal control Assertion Sale Processing Flowchart: Weakness A. The office was uninformed about the credit approval - Valuation B. Missing customer information and product validation - Valuation C. Invoices were mailed before shipping the goods - Existence And does not matched with bill of lading D. Bill of ladings are not pre numbered - Completeness Strength Good internal control for receivables aging analysis and Follow up of delinquent accounts. Cash
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IP Shante Patterson ACCT205 AIU Online December 1, 2013 The internal control system should be intended to distinguish and prevent deception, mistakes and oversights, and material misstatements; then again it can only provide sensible assurance that the financial statements are at liberty from material misstatements. The best designed internal control system will not avert management override or collusion. The internal controls system is only as good as the management backing behind the system;
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Internal control, as its name implies, involves everything that controls risks to a business. With enterprise strategic management theory continuing to develop, the actual meaning of internal controls is of increasingly focused. “Internal controls are an important step to help safeguard assets against the unauthorized acquisition, use, or disposition.” Fabiano (2012) explains that “Internal controls can help minimize the risk of employee theft or fraud occurring in your organization.” While according
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Revenue | |Cost of Goods | | | | |Sold | | |Dec. 15 |Accounts Receivable |900 | | | | Sales Revenue | |900 | | |(To record credit
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work as it is intended. Because of this, I have laid out a variety of internal controls to put into place to curb the risks that could be associated with using such a system. The risks will not only be evaluated, but solutions will be given to mitigate the risks associated with the different areas the new software is intended to help. Overall, the recommended course of action for KFF is to put in place multiple internal control elements to ensure the systems not only work efficiently to maximize profits
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whether the accounts affected by the acquisitions of goods and services and the cash disbursements for those acquisitions are fairly presented in accordance with accounting standards. There are three classes of transactions included in the cycle: 1. Acquisitions of goods and services 2. Cash disbursements 3. Purchase returns and allowances and purchase discounts Slide 2 And all three transactions are either debited or credited to accounts payable. Ten typical accounts involved in
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success. The company follows segregation of duties in the accounts and the finance department. The audit staff consists of well experienced and trained personnel. The CEO is aware of the importance of risk assessment procedures and is in the process of establishing of risk assessment team. The description shows adequate separation within the CBIS function, i.e. systems analysis and programming are separate from data processing and control. There are areas where the reporting procedures are very strong
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