Internal Control System Justification Brandy Ritz ACC/445 May 5, 2014 Bunney Schmidt Internal Control System Justification Internal controls are a good way to keep records up to date and valid. Insurance and portfolio approaches are great to have set in place for risk management, but a system of controls would provide extra security with the books. Below is an overview of insurance and portfolio approaches along with why internal control systems would enhance the business. Risk Management
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Internal controls, controls the risk of companies financial loss or misstatements. Insurance and portfolio theory are the combined methods of internal controls. This paper will justify the need of internal control systems, insurance, and portfolio approaches, and why an internal control system is more beneficial. An internal Control system is responsibility of the Controller to analyze company performance in operations, compliance, and reporting as well as aid management in the development of
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Famima!! Internal Control When looking for a quick drink or fast meal, it is sometimes very troublesome to have to drive to a market and wait in potentially long checkout lines. This sparked the idea for a smaller store that only carries the most frequently bought items for the customer’s convenience. Nicknamed convenience stores for very obvious reasons, these little establishments exist all over the world and carry just about any little thing you might need at a very local distance. Inventory
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Every entity faces a variety of risks from external and internal sources that must be assessed. A precondition to risk assessment is establishment of objectives, linked at different levels and internally consistent. Risk assessment is the identification and analysis of relevant risks to achievement of the objectives, forming a basis for determining how the risks should be managed. Because economics, regulatory and operating conditions will continue to change, mechanisms are needed to identify and
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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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The Importance of Proper Internal Controls Lewis W. Wilson Jr. Post University College Abstract In the field of accounting, one important aspect of any business is their internal controls. Internal controls are defined as “a means by which an organization’s resources are directed, monitored, and measured” (http://en.wikipedia.org/wiki/Internal_control). Here in the United States, the Financial Accounting Standards
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Apollo Shoes Inc. From: CBA Auditing Firm Re: Audit Report and Internal Control Evaluation Date: June 10, 2013 CBA Auditing Firm has audited the balance sheets of Apollo Shoes as of December 31, 2012. In addition, our auditing firms also reviewed statements of income such as shareholders equity, comprehensive income, and cash flows for the same period. Our company also assessed Apollo Shoes financial reporting internal controls based on the Committee of Sponsoring Organizations of the Treadway
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Internal Controls Essay Carole Crews Accounting 1010 section 6 Let’s first talk about what “internal control” means. It is a process that helps to protect the assets of a company whether that asset be money, equipment, or merchandise. What are the objectives of internal controls? • Safeguard assets (accounting) such as cash or merchandise from loss or theft • Compliance (administrative) of laws and regulations • Accomplishment of goals (internal) of sales, profits • Reliability
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INTERNAL CONTROL (Case Study 2) 1. Introduction As President of LJB Company is looking to go public by bringing internal controls system which is as one of the most challenging corporate governance issues because internal control involves everything that controls risks to an organization. Our accounting department has been chosen to evaluate the internal controls of LJB Company. LJB Company is planning to be a publicly traded company in the near future. Our firm needs to evaluate the internal
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able to reflect on the internal controls for LJB Company that need to be in place prior to the company going public, I will ask and answer three questions. I will detail these in the following ways. First, is there a need for improved or new internal controls? Second, what actions are not in compliance? Lastly, what company practices are in compliance according to the audit? According to the Sarbanes-Oxley Act of 2002, “public companies must issue an internal control report, and the outside
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