Question 1 a) Select two companies where inadequate internal control have resulted in disastrous effects on the organisation or exposed it to heavy losses. Research the facts of the failure and report on the facts and the losses suffered. In your report‚ include suggestions for changes to operations (internal controls) that could have prevented the final outcome. Where could you find a list of these internal controls and how are they documented? Examples of companies include: Coles Myer
Premium Corporate governance Corporation Internal control
What is internal control and why is it important The American Institute of Accountants first defined the term internal control in 1949‚ followed by further clarifications in 1958 and 1972. In 1977 publicly held companies came under legislation to adequately implement controls to protect their financial information. A report by the Committee of Sponsoring Organizations in 1992 and the Sarbanes-Oxley Act of 2002 are more recent documents defining internal controls.( Bishop‚ 1991‚p.117-123; Colbert
Premium Internal control
What were the strengths and weaknesses of Sunshine’s current internal control system? “Internal control is broadly defined as a process designed to provide reasonable assurance regarding the achievement of effectiveness and efficiency of operations‚ reliability of financial reporting and compliance with applicable laws and regulations”(COSO.org‚ 2012). Internal control can help an entity achieve its performance and profitability targets‚ and prevent loss of resources. The Committee of Sponsoring
Premium Internal control
Audit Committee Quality‚ Auditor Independence‚ and Internal Control Weaknesses Yan Zhang‚ Jian Zhou‚ and Nan Zhou* * All authors are from SUNY – Binghamton. We thank two anonymous reviewers for detailed and insightful suggestions that have significantly improved the paper. We also thank workshop participants at the 2006 American Accounting Association Auditing Midyear Meeting and the 2006 American Accounting Association Annual Meeting for comments‚ and Raj Addepalli‚ Shanshan Chen‚ Yujing
Premium Internal control Auditing
Case Study 2 – Internal Control TO: LJB Company President FROM: Andrea Johnson DATE: February 8‚ 2013 SUBJECT: Internal Control It is with great pleasure that we can provide you information and advisement on internal controls that will assist LJB Company with going public. We understand that you have communicated your concerns and expect that this report will assist you with deriving conclusions. This report will: 1. Inform you of any new internal control requirements in reference to
Premium Internal control Sarbanes–Oxley Act Audit
Generally‚ every organization’s performance could be enhanced if they have a sound internal control system. Internal control sys has two subcategories: A) Control environment B) Control procedures and policies @ control activities Control environment is abt attitude of board n mgt‚ whether they have integrity(honesty) and value the importance of running a sound internal control system. So‚ if their attitude is good‚ they will raise awareness and foster good attitude among ppl in the org
Premium Internal control Auditing
company 5 - The Accounting System & Internal controls 6 – Evaluation of the Accounting Systems 7 – Strengths & Weakness in the Accounting System 8 – Recommendations for Improving the cash handling‚ Payroll & Accounting Systems 9 – Cost benefit analysis 10 - Conclusion 11 - Appendices 1) Terms of Reference 1.1 This project has been prepared to fulfill the criteria of Unit 10‚ managing systems and people in the accounting environment of Level
Premium Accounts receivable Cash Accounts payable
Internal Control Risks Identified in Apollo Shoes Assessing control risk is the process of evaluating the design and operating effectiveness of a company’s internal controls as to how it prevents or detects material misstatements in the financial statement assertions of management (Hayes‚ Dassen‚ Schilder‚ & Wallage‚ 2005). The conclusion reached as a result of assessing control risk is referred to as the assessed level of control risk. When assessing controls the auditor looks for weaknesses
Premium Auditing Internal control Audit
Checklist for Evaluating Internal Controls ACC/544 April 29‚ 2013 Christine Errico Checklist for Evaluating Internal Controls Internal controls are methods a company implements to safeguard and protect the company in its day-to-day operations as well as its financial information. To ensure these controls are effective and performing properly a company must evaluate these controls. In performing this evaluation a company should use the three phases of the control evaluation. These phases
Premium Internal control
EXECUTIVE SUMMARY This paper will evaluates the role of information technology and how it affects internal audit process in banking industry. The study will also stresses on how IT affects internal control (control environment‚ risk assessment‚ control activities‚ information and communication and monitoring) and provides guidelines and best practices in evaluating techniques available to effectively perform auditing tasks internally. It will addresses how technology‚ Information system (IS) and
Premium Internal control Auditing Internal audit