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    Explain how a cost accountant helps internal control

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    You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting. The CEO is not convinced that a managing accountant position is needed. Prepare a memo for the CEO on the following:
    Explain the objectives and characteristics of an internal accounting system.
    Include an explanation of the importance of this information to the company.
    Include an explanation of ethics in business and the managerial accountant's role in upholding the code of ethics.

    488 words

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    Solution Preview

    Dear CEO,

    We believe that a new management accountant position would improve our business and the careers of our people. This may seem like a tall order. Let me explain in three parts. First, what would this person do? Second, how will it help the company? And last, what is a management accountant's a role in fostering ethical business practices?

    A manager over internal controls would identify many potential adverse events before they occur. While all risks are not foreseeable, many are and this position would help identify and monitor these risks. These risks fall into several categories. First, we want to be sure that all assets are safeguarded, used in a safe manner, are properly insured against loss, and operate in accordance with company ...

    Solution Summary

    This discussion is in everyday language suitable for novice or intermediate student.