Explore BrainMass

Explore BrainMass

    Improve weak internal controls to better safeguard assets

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How would you improve weak internal controls to better safeguard a company's assets (provide specific examples of the weak internal control)? Would these internal controls differ with a different type of business?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:40 am ad1c9bdddf
    https://brainmass.com/business/accounting/improve-weak-internal-controls-to-better-safeguard-assets-472868

    Solution Preview

    Safeguarding assets is a primary control procedure needed by every type of business. All businesses have assets even though they will differ greatly in relative size and importance between different types of companies.

    The main procedures for preventative actions consist of

    1. Separation of duties
    2. Proper authorizations
    3. Adequate documentation
    4. Physical security

    The types of assets that require such procedures will follow the balance sheet beginning with Cash and ending with other assets. The closer the type of asset is to the top of the list, the more stringent the controls must be to insure against loss. That's because assets near the top of the pile are most easily stolen.

    Using cash for an example, weak internal controls do not provide for separation of duties. That would mean that the person who writes the checks ...

    Solution Summary

    The 542 word solution provides an indepth discussion in response to th questions.

    $2.19

    ADVERTISEMENT