as the company grew, these issues grew also. Major Issues. There is a lack of solid internal controls in Smackey Foods based on the trust that is being put into certain employees to complete their positions. Some indicators were present that would have indicated that the internal controls should have been appropriately applied. These indicators are waste issues, sales projections being off 11%, and accounts receivable. The first issue that is found with Smackey Foods, is the fact that there
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good job of developing an effective IT system, and it has competently identified and reduced IT risks related to security flaws which were present at the time of the hacking incident. Specifically our IT audit suggest that there are effective internal controls which have been further upgraded to keep up with the security vulnerabilities discovered after the intrusion. The tone at the top of the organization is also adequate. Due to the size of the organization and the materiality (financial and reputation)
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Wang 11/23/15 Segregation of Duties Segregation of duties is often referred to as the most effective form of internal control. Unfortunately, especially for small business, it can also be the most expensive form of internal control due to the necessity of increased work force. Segregation of duties (SOD), also known as separation of duties, falls under the framework’s control activities component created by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). According
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Title: Internal Control and Other Risk Internal Control and Other Risk University of Phoenix Internal Control and Other Risk Kudler Fine Food is very concern with the company internal control and risk
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The reason we assign low acceptable audit risk to this account is due to the risk that may or may not be contributed through the deception of the inventory. Due to risky internal controls suggested by the warehouse manager’s response, we have reasonable belief that the inventory account and the external users may be affected by this. 3. None, *contributes to 11. 4. None 5. a. Likelihood of financial difficulties: As the missing accounts receivable is a large percentage of the total balance
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LJB Company | Case Study #2 LJB Company | Internal Control | | This document contains information about the internal controls for LJB Company | TABLE OF CONTENTS 1. Introduction …………………………………… Pg 2 2. Six Internal Control Activities ……………….. Pg 2 3. LJB Company Positive Side ………………… Pg 2 4. Segregation of Duties ……………………..…. Pg 3 5. Petty Cash …………………………………….. Pg 3 6. Human Resources ……………………………. Pg 4 7. Conclusion ……………………………………... Pg 4 LJB Company
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APRIL 2010 ( Question 1 [c] ) (i) According to Section 174(2), auditor is responsible to report defects and irregularities in accounts and the company’s accounting and other records relating to accounts in general meeting. An auditor has the obligation under law to perform his duties with the skill and care required under certain circumstances. The auditors always owes of care to the client. The client has the right to bring legal action against the auditor either for breach of contract or
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LBJ’s Internal Control Systems. I realize that there are a plethora of accounting firms that you could have chosen therefore; I wanted to express my sincere gratitude for trusting our firm to assist you with your needs. With that said, I have carefully assessed the information you provided to my colleague at the initial meeting regarding LBJ’s posture for going public. I have outlined the key areas of concern and have broken the areas down into the following categories: 1. Internal Control
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Internal Controls Latosha Bonita James American InterContinental University Abstract This paper will explain the accounting department and limitations of the internal control system. The internal control system and adjusting entry for 3 months at $500 per month. After reading this essay one will learn 3 limitation and 2 examples of internal control procedures. Along with the symptoms of lack of internal control and the impact of a missing journal on the financial statements
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* Pakistan Journal of Social Sciences | Year: 2009 | Volume: 6 | Issue: 4 | Page No.: 181-189 | | Impact of Internal Control System in Banking Sector in Nigeria | | Olaoye Clement Olatunji | | Abstract: The Central Bank of Nigeria reported that the backward development in Nigeria was attributable to weaknesses in the internal control systems of the banks. This has clearly pointed out the picture of how fraud has been penetrated in the financial strength of Nigerian Banks. In
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