This website uses cookies to ensure you have the best experience. Learn more

Internal Control Paper

1663 words - 7 pages

INTERNAL CONTROL PAPERThe procedures involved in accounts payable for Jamona.com is reviewed in detail and this paper assesses the strengths and weaknesses of their internal control system. The required additional controls to overcome the weaknesses are discussed in detail. The recommended and existing controls are analyzed and each control is identified as preventive, detective, or corrective.Overview of Internal ControlInternal control is the term used to describe the policies, plans, and procedures implemented by a firm to protect the assets of the organization. The internal controls are tools that the management, board of directors and other employees should abide by. Management is ...view middle of the document...

Weaknesses of Jamona's internal controlsThe office manager only receives invoice in mail but does not verify or approve the invoices so as to determine the reliability of the payment. Only upon verification, the invoices should be forwarded to accounts payable. The responsibility of preparing bank reconciliation statement currently entrusted to accounts payable department should be revoked so as to mitigate fraud and financial reporting risks. Appropriate segregation of duties is very imperative in the accounting process. The accounts payable authorized to signs check is considered to be a weakness. There is a lack of documentation throughout the process. Another weakness in the accounts payable process is the lack of communication. Although the office managers works closely with the accounts payable department, there is not enough interaction between the two departments to assure that all transactions are being handled properly. The finally weakness of Jamona's accounts payable procedure is the lack of monitoring by upper management throughout the accounts payable process. Currently the processes rely on the accounts payable department and the office managers.RecommendationsThe office manager should apply detective internal control measures and all invoices should be duly verified prior forwarding them to accounts payable department. The preventive internal control measure should be implemented whereby a minimum of two authorized officers should sign the checks. An audit procedure needs to be included to verify the authenticity of random transactions. This detective control process will capture any deviations that occur from the expected standard process. As a preventive and detective measure access to sensitive data and information should be restricted. Responsible authorized individuals should be identified and they need to be given access to confidential data. The responsibility of preparing bank reconciliation statement currently entrusted to accounts payable department should be given to the office manager. This preventive control mitigates fraud and eliminates financial reporting risks. There should be a customized form that accompanies invoice which describes the transaction and justifies the payment on the account. By having documentation of the transaction, management can review all payments made to suppliers and make sure the expenses were justified (Marshall & McManus & Viele, 2003, p. 10).To increase the communication between the two departments, Jamona should establish monthly accounts payable review meetings. In the accounts payable review meetings, the company's management, accounts payable department and any other required individuals should determine if the appropriate amount is being spent on each account. Managers at various levels in the company should evaluate the design, operation of the procedures and initiate corrective action when specific controls are not functioning properly. Other processes previously...

Other Essays On Internal Control Paper

Control Systems in Petroleum Industry - University - Case Study/ Research Paper

3019 words - 13 pages software based on linear programming is required to check the goals and targets of control system. • Analysis: ❖ Graphical User Interface of Oil Refinery: Control systems are very important because they diminish human intervention and establish accuracy in an oil refinery, that is why a SCADA/PLC is needed to minimize errors. System is supervised through a SCADA system while a PLC is used to store sequencing and logic in the internal storage for

Communication Case Study Analysis: There's A Syringe In My Pepsi Can! - MKT438

1797 words - 8 pages a Syringe in My Pepsi Can! can and will interrupt the flow of an organizations business.The intent of this paper is to evaluate the effectiveness and impact of communication between the PepsiCo and the organizations intended publics, differentiate between those internal and external publics, evaluate the benefits and risks of the communication tools used, and determine the impact of new technologies were this crisis to happen in today's global

Moon Exploration, The Apollo Program

756 words - 4 pages . long and 10ft. in diameter at theend. It had a major advantage with its internal guidencesystem, that was developed by The MassachusettsInstitute of Technology.The CSM was made of two parts. The crew stayed inthe Command Module, which had some couches andwas pressurized with oxygen.Behind the CM was the SM or Service Module whichhad the main engine, which had 21,500lb. of thrust.The reaction control system , oxygen, fuel cells,hydrogen tanks, and

Carrie book report exampling Characteristics and themes based on the book - English - Book Report

792 words - 4 pages Chelsea Lathrum Mr. Kade English 2H 16 August 2018 Carrie Book Report Stephen King’s book “Carrie” is about a very unusual girl, who has a unique power that can also be very dangerous and deadly if she gets to the point of having no control of her temper. Because of her being so different throughout the book she was always picked on by her classmates and was never treated like a normal human girl. Through the book, the main character Carrie

Communication Plan, Monitors And Controls

1860 words - 8 pages Communication paper PAGE \* Arabic 1 Running Head-COMMUNICATION PLAN, MONITORS AND CONTROLSLittle Fun Size Candy Communication StrategiesJaime EnriquezBUS 475January 10, 2011Lesley KingWriting a business plan is an important factor in beginning a business, but many owners are unsuccessful to make out the importance of one. A good plan focuses on meeting primary objectives, and to stay on track, it is essential in developing a good

team building in project management - project management , team and stakeholder management - essay

2285 words - 10 pages of national capital region of India. The roles are studied against the theoretical framework using established principals of project management practice and their adaption in the varied typology of projects. The paper talks about the landscape of a developing country, where most of the company’s and consultants are accustomed to traditional practices of construction project management which is similar for every project, whether success or a

Program Maintenance And Change Control Plan

1537 words - 7 pages costly as those that are well planned and tested. A plan that controls changes, tests, and implements the changes in a thorough manner will make more efficient use of all the companies' resources. To be effective a plan must be in place through the entire life cycle of a software application. This paper will document the requirements and benefits of software maintenance and change control plan as well as a providing a proposed plan.The

Misuse of democratic institutions in Singapore - Politics of Southeast Asia - Essay

1024 words - 5 pages Prabhmeet Kaur POSC 213- Politics of Southeast Asia Response Paper to Week 11’s readings Singapore has been classified as a hybrid regime compromising of democracy and authoritarianism. This paper aims to support the author’s findings, through examples, that Singapore uses democratic institutions to sustain its hybrid regime regime. Beyond the use of institutions, the PAP has used other methods to remain the front runner during elections which

SOCIALIST FEMINISM -- A STRATEGY FOR THE WOMEN'S MOVEMENT

2241 words - 9 pages SOCIALIST FEMINISM -- A STRATEGY FOR THE WOMEN'S MOVEMENTBy Hyde Park Chapter, Chicago Women's Liberation UnionHeather BoothDay CreamerSusan DavisDeb DobbinRobin KaufmanTobey KlassContact:H. P. Chapter819 West GeorgeChicago, Illinois 60657Additional copies 50 cents plus mailing costsBulk rates available on requestINTRODUCTIONWe have written this paper to express and share with other women ideas for a new strategy for the women's movement

sample answers Language paper 1 and Language paper 2 - SCHOOL - essAY

2540 words - 11 pages Paper 1 Language Q2 – 8 marks Mansfield uses the contrast of imagery of the street’s windows, which in reality were “blurred and misty” but to Rosabel seemed “opal and silver” under the light. The second description seems almost magical and creates and ethereal atmosphere which gives the reader an insight into how Rosabel views even the “dullness” as beautiful. These images also both allude to jewels creating a sense of lavishness. This is

Fundamental to Business Operational - Trinity International College - Dissertation

3555 words - 15 pages figures. Signed:__________________________ Name:________________________________________________________ Date:_________________________ Nurizzah Binti Roslan – April 2019 SUMMARY The main objective of this paper is to identify the key factors that influencing the operation management. There are two main area that will be discussed; internal and external that will lead the successful rate in a company. All the factors will be discussed on how it will

Similar Papers

Fraud Triangle And Weak Internal Control Liberty University Acct 650 Essay, Db 1

1039 words - 5 pages Running head: FRAUD TRIANGLE AND INTERNAL CONTROL 1 FRAUD TRIANGLE AND INTERNAL CONTROL 1 Fraud Triangle and Internal Control Systems Discussion Board 1 Anita M. Joslyn ACCT 650 Corporate Governance and Fraudulent Financial Reporting Liberty University 16 May 2019 Fraud Triangle and Internal Control Systems While evil exists in this world, there will always be those who will search out “ways to take advantage” of others (Harris, 2010, p. 74). A

Untitled Essay

914 words - 4 pages reinforcement. This refers to the way students think about their papers or research. If external they do not care about the papers and do other things. If they are internal they will do their paper really fast, since their desire comes from having the paper done. In previous research they have found that there is no relation between locus of control and academic procrastination. They have also found that procrastinators had a greater external locus of

Ethics Article Review

980 words - 4 pages , consideration of fraud, and reporting on internal controls." (Martin)Audit planning highlights the "tasks, checks, and balances" in place within the organization. The core component of this is the "control environment" or the people within the organization. "Without a strong and healthy control environment, the other components of internal control hardly matter because no amount of control over physical or processing activities can be expected to function

Examined Life Descrtion Of Othello, Developing Genome, And 40 Studies That Changed The World Champlain College Assignment

1712 words - 7 pages internal and external locus of control. “Are the consequences of your behavior under your personal control or are they determined by forces outside of yourself?” (Hock 2015 192). This question is very similar to the main question that is asked in the introduction of this essay. As in relation to this paper, rotter’s theory examines if people really do have a say in the choices they make or is it pre-determined by forces beyond the person’s control