Benefit of Evaluating an Internal Control System in Phases
What is the benefit of evaluating an internal control system in phases?
What is the benefit of evaluating an internal control system in phases?
What are some major components of an internal control system? Are these components always necessary?
For each of the following independent situations, indicate the apparent internal control weaknesses and suggest alternative procedures to eliminate the weaknesses. 1. John Smith is the petty cash custodian. John approves all requests for payment out of the $200 fund, which is replenished at end of each month. At the end of
Describe the most efficient means to begin gathering evidence about an entity's internal control.
Would like some assistance writing an essay on internal control procedures. Internal Control Procedures - Accounting Assignment: Read the following case and explain one internal control procedure that would be helpful in this scenario. Alison Marsh was a trusted employee of Small City State Bank. She was involved in e
To properly assess the internal controls in place at TPC, you have found that there are three major objectives that an entity should follow in designing an effective internal control system: reliability of financial reporting efficiency and effectiveness of operations compliance with laws and regulations Explain what e
What are some limitations of the internal controls of the business cycles at your organization? How would you address these limitations?
Discuss how database systems along with their characteristics (such as referential integrity -- but there are others) can help companies have an effective internal control system. Gives the three database characteristics and explains them. Describes what a database should be.
See Commonwealth Business School Case 16-1 attached. MCS -- Evaluate the criteria for a good management control system and other requirements attached.
The FCPA, COSO, and SOX, (just to name a few), covered corporate internal controls addressing different aspects. In addition IT has established their own internal controls that address the IT specifics and called 'COBIT'. Is it possible to have one internal control system that applies to all companies under the same industry?
Consider each of the following situations independently: a) The accounts receivable clerk opens the mail, records the cash receipts, posts the customer accounts, then forwards the cheques received to the cashier for safekeeping until they can be deposited by the assistant controller. b) All plant employees are required to
During an audit, you have identified that because of a weak internal control system, an adjusting entry for prepaid insurance was not recorded for the first 3 months of the year at $500 per month. Please Identify the limitations of the internal control system. Provide at least 3 limitations. Provide at least 2 examples of
The internal control framework developed by COSO includes five so-called 'components' of internal control. What are these components? What do they mean to auditors?
What are some internal controls related to cash? Why is control over cash important? What are the pros and cons of segregation of duties over cash? Why is a bank reconciliation considered an internal control over cash? How does it provide control? What control violations might the bank reconciliation highlight?
Discuss how can an organization best use its internal complaint process to forego the need for external resolution? When might a professional moderation be useful? Provide an example.
The profession has argued for decades about the advisability of mandatory reporting on internal control by public companies and by governmental entities. In the 1970s and 1980s, the main players in the debate were the Commission on Auditor's Responsibilities (the Cohen Commission), the AICPA, and the SEC, among others, and their
A computer diskette manufacturer is concerned that some diskettes have bad sectors that would cause a diskette to hold less information than it was intended to hold. In the past, only 5% of these diskettes have had bad sectors. If the company wishes to set 99.7% control limits based on samples of size 500, what would these lim
A significant component of an audit program is the examination of the organization's internal control procedures and if they are being followed. However, there are a few limitations to this review of internal controls. A few of the limitations are listed below. What has your experience been, or what have you read, about why th
See attached case file. Please help with the following: o Evaluate the manual and computerized control activities. o Discuss internal controls that are and are not present in the above scenario. o Assess internal control limitations and risks. o Discuss your concerns given your knowledge that the previous audit firm re
Assume that you have recently been appointed the CFO of a mid sized company which did not have an internal audit function. How would you justify the incremental expenses of establishing an internal audit function in your company?
What are some major components of an internal control system? Are these components always necessary? Explain your answer.
What is the meaning of the concept of reasonable assurance in terms of internal control? What are the inherent limitations of internal control? Please provide a full response for a full understanding of the topic
Who are the key people that are involved in establishing, reviewing, regulating, and reporting internal controls within a company? Please provide a full response for a full understanding of the topic
You have been asked by the board of trustees of a local church to review its accounting procedures. As a part of this review, you have prepared the following comments relating to the collections made at weekly services and recordkeeping for members' contributions: 1. The church's board of trustees has delegated responsibilit
Scenario: You are an accountant at a local CPA firm that is auditing the accounting records of XYZ Company. You have been asked to educate the accounting department about the limitations of the internal control system in preparation for an upcoming audit. During your audit, you have identified that because of a weak internal con
Briefly describe the responsibilities each of the following groups of people has regarding internal control: Management, the board of directors, internal auditors, others in the organization.
1. Summarize the primary purposes of an internal control system. 2. What are the three internal control objectives for financial reporting?
1. Internal control is a process effected by an entity's board of directors, management, and other personnel that is designed to provide reasonable assurance regarding the achievement of objectives. (True/False) 2. What are the two main objectives for conducting preliminary analytical procedures?
Instructions: 2-3 short sentences for each question, no right or wrong answer... 1. Do you believe that the lack of internal controls in a business rather than theft or abuse is the main cause for inventory discreptancies or do you think that it is simply an accounting issue? 2. In addition to the ADEA (Age Discrimination
Please help me answer these a. What is the general nature of the questions included in internal control questionnaires? b. Identify several advantages of using questionnaires to document the auditor's understanding of internal control.