cms case
Campground Management Services case
Control environment
The top management in CMS’s California headquarters is independent from regional managers and attendants, who are responsible for the collection and process of campground fees. CMS has a well-designed organizational structure. Each of the fifty regional managers is responsible for managing and supervising ten attendants, and then reports to the headquarters. Further, CMS demonstrates its commitment to attract competent workers. Both regional managers and attendants are required to live at campsite. The recruiting policy specifies the qualifications of the applicants, minimum working hours and compensation components.
Risk assessment
Some material risks exist owing to the lack of separation of duties. The attendant is responsible for both handling and recording payments. Consequently, one risks is that the attendant miscounts the money unintentionally as each attendant deals with numerous envelopes everyday. Another risk is that the attendants would under report the payment. It is easily for them to steal the money and erase the record because the money is kept at their motorhome and no one will know how much is collected until Monday when the revenue form is submitted to the manager. Moreover, the manager is accountable for collecting and depositing money without anyone’s supervision.
Control activities
The lock box used to store the envelopes presents a physical control that prevents people other than the attendants from accessing the money. The attendants are required to complete a utilization form and revenue form. They also need to file all the empty envelopes. These paper works will be submitted to the manager and mailed to the headquarters, which indicates a paper control. When CMS receives the deposit from regional managers, the headquarters will compare the amount with revenue form. At the end of month, the accountant will review and compare the two forms with information on the envelopes,
Control environment
The top management in CMS’s California headquarters is independent from regional managers and attendants, who are responsible for the collection and process of campground fees. CMS has a well-designed organizational structure. Each of the fifty regional managers is responsible for managing and supervising ten attendants, and then reports to the headquarters. Further, CMS demonstrates its commitment to attract competent workers. Both regional managers and attendants are required to live at campsite. The recruiting policy specifies the qualifications of the applicants, minimum working hours and compensation components.
Risk assessment
Some material risks exist owing to the lack of separation of duties. The attendant is responsible for both handling and recording payments. Consequently, one risks is that the attendant miscounts the money unintentionally as each attendant deals with numerous envelopes everyday. Another risk is that the attendants would under report the payment. It is easily for them to steal the money and erase the record because the money is kept at their motorhome and no one will know how much is collected until Monday when the revenue form is submitted to the manager. Moreover, the manager is accountable for collecting and depositing money without anyone’s supervision.
Control activities
The lock box used to store the envelopes presents a physical control that prevents people other than the attendants from accessing the money. The attendants are required to complete a utilization form and revenue form. They also need to file all the empty envelopes. These paper works will be submitted to the manager and mailed to the headquarters, which indicates a paper control. When CMS receives the deposit from regional managers, the headquarters will compare the amount with revenue form. At the end of month, the accountant will review and compare the two forms with information on the envelopes,