Internal Control Essay

1. Inform the President of any new interior(a) reassure requirements if the conjunction decides to go public.As per the accident that happened in the company about some employees was viewing pornography on company computing device and he had a hard time to get his employees admitted that they were the one who doing it. He should lend oneself limit entranceway by individual passwords for each soul to put down in the computer systems. To make sure that which person was log on in the computer and do bad thing during that period.2. offer the President of what the company is doing right (they ar doing some things well) and also preach to the President whether or not they should buy the indelible ink railroad car. When your advice the President, ravish be sure to reference the applicable internal control ruler that applies.From the passage that the nibant has recently started using prenumbered invoices pursual by the formula of internet control activities. please surface the Documentation Procedures passage below.From the passage, the prexy wants to buy an indelible ink machine to print their checks. In my opinion, I would like to recommend that he should buy an indelible ink machine following by the principle of internal control activities. interest find the Physical Controls passage below.Principles of internal control activitiesDocumentation ProceduresCompanies should establish procures for documents. First, whenever possible, companies should use prenumbered documents, and all documents should be account for. Prenumbering helps to prevent a traffic from universe immortalizeed more than once, or conversely, from not bring recorded at all. Second, the control system shown that employees should promptly forward source documents for bill entries to the accounting entries to the accountingdepartment. This control measure helps to ensure timely recording of the transaction and contributes directly to the accuracy and reliability of the accounting record. Require use prenumbered checks and account for them in sequence each check must declare an sanction invoice require employees to use corporate credit cards for reimbursable expenses stereotype invoices paid.Physical ControlsStore blank checks in safes, with limited access print check amounts by machine in indelible ink.3. talk over the President of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle that is organism violated along with a recommendation for improvement.Following from the passage that they stupefy one accountant who serves as Treasurer and Controller which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also recieves the checks and completes the monthly desire recommendation. The accountant is so busy that the company handels pretty cash a bit differently.He should asign duties to more than one pe rson not notwithstanding one because it hard for one person to control and serves as financial officer and controller in the same time.Following by Principles of internal control activities. Please find separationism of Duties and Establishment of accountability passage below.From the following passage that all employees have access to the minuscule cash in a desk drawer and are asked to only place a tag if they use any of the cash. In my opinion, he should limit access to the petty cash in a desk drawer, only one person could have creditworthy for the petty cash. Following by Principles of internal control activities. Please see the Establishment of Responsibility passage below.Principles of internal control activitiesSegregation of DutiesDifferent individuals pass and make payments check singers do not record disbursements Segregation of duties is indispensable in an internal control system. There are two common applications of this principle 1. Different individuals should be responsible for relate activities. 2. The responsibility for record-keeping for an asset should be separate from the physical custody of that asset.The sensible for segregation of duties is this The work of one employee should, without a duplication of effort, provide a reliable basis for evaluating the work of another employee. Segregation of related activities make one individual responsible for related activities increases the potential for errors and irregularities.Establishment of ResponsibilityAn essential principle of international control is to assign responsibility to particularised employees. Control is most effective when only one person is responsible for given task. Establishing responsibility often requires limiting access only to important personnel, and then identifying those personnel. Only designated personnel are authorized to sign checks (treasurer) and approve vendors. Compare checks to invoices reconcile bank statement monthly