Explore BrainMass

Explore BrainMass

    Control and Rewards System

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

    What kinds of control and reward systems would we be likely to find in (a) a small manufacturing company, (b) a chain store, (c) a high-tech company, and (d) a Big Five accounting firm?

    © BrainMass Inc. brainmass.com June 4, 2020, 1:27 am ad1c9bdddf

    Solution Preview

    Control and reward systems would vary from place to place depend on many factors. A small manufacturing company, for example would most likely not have strong internal controls as would the Big Five accounting firm that has more riding on what its employees do and how things are handled. A small manufacturing company might have controls set that allows more from employees, does not restrict what the employee does and says, and may not even account for the laws that involve a particular situation as would that same big accounting firm. Small manufacturing companies are not held to the same strict laws as the large accounting firms would be.

    "It is generally believed that an internal control system reduces risks and helps firms ensure the reliability of financial statements and compliance with laws and regulations (Spira & Page, 2003)" (Jokipii, 2009, p115). The big five accounting firm needs internal controls to demand that its employees comply with the laws that the government expects so that the consumers ...

    Solution Summary

    The solution discusses the control and rewards system.