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Internal Controls

Internal Control Weaknesses for Cash and Receivables

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

Evaluation of Internal Control Procedures

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

effective internal control system

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

Internal control limitations

What are some limitations of the internal controls of the business cycles at your organization? How would you address these limitations?

Database system and effective internal control system

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.

Internal Control Systems: Example Problem

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?

Internal control weaknesses

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

Comprehensive Argument: Internal Control System

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

Internal Controls Related to Cash

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?

Internal Complaints

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.

Reporting on Internal Control: Public Companies

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

Control limits for computer diskette manufacturer

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

Internal Control systems for a church: weakness, recommended improvements

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

Limitations of Internal Control System

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

Internal Control: Preliminary Analytical Procedures

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?