Biltrite: Integrity And Ethical Values
Module 2
1. Identify strengths and weaknesses using the 20 principles outlined in COSO's 2006 Guidance.
Control Environment
• Integrity and Ethical Values- he company and human resources department developed a code of conduct for Biltrite detailing expected standards of ethical behavior and distributed it to all existing employees. this instills a high ethical value into the environment, and shoes that management is wanting a high ethical and integrity of the company.
• Board of Directors- Regarding the board of directors, it is necessary for additional information to determine whether they exercise oversight and responsibility related to financial reporting and related internal control. It is noted that the board is responsible for making …show more content…
Biltrite does clearly state they have adequate training programs and have a code of conduct for existing employees.
• Information technology: Biltrite's software has adequate controls regarding computer input and output. Any misstatements are addressed, and other controls such as bank account reconciliation.
Information and Communication
• Financial Reporting Information: Additional information is needed to identify if the information is used at all levels of the company, and distributed in a form and timeframe that supports the achievement of financial reporting objectives.
• Internal Control Information: The information that is used is of adequate timeframe, and does not hinder the ability of the personnel to carry out their internal control responsibilities.
• Internal Communication: The internal control objectives, process, and individual responsibilities at all levels are supported by strong communication.
• External Communication: Additional information is used to distinguish if matters affecting the achievements of financial reporting objectives are communicated with outside parties.
1. Identify strengths and weaknesses using the 20 principles outlined in COSO's 2006 Guidance.
Control Environment
• Integrity and Ethical Values- he company and human resources department developed a code of conduct for Biltrite detailing expected standards of ethical behavior and distributed it to all existing employees. this instills a high ethical value into the environment, and shoes that management is wanting a high ethical and integrity of the company.
• Board of Directors- Regarding the board of directors, it is necessary for additional information to determine whether they exercise oversight and responsibility related to financial reporting and related internal control. It is noted that the board is responsible for making …show more content…
Biltrite does clearly state they have adequate training programs and have a code of conduct for existing employees.
• Information technology: Biltrite's software has adequate controls regarding computer input and output. Any misstatements are addressed, and other controls such as bank account reconciliation.
Information and Communication
• Financial Reporting Information: Additional information is needed to identify if the information is used at all levels of the company, and distributed in a form and timeframe that supports the achievement of financial reporting objectives.
• Internal Control Information: The information that is used is of adequate timeframe, and does not hinder the ability of the personnel to carry out their internal control responsibilities.
• Internal Communication: The internal control objectives, process, and individual responsibilities at all levels are supported by strong communication.
• External Communication: Additional information is used to distinguish if matters affecting the achievements of financial reporting objectives are communicated with outside parties.