Case study 2 - Internal Control
Case Study 2 – Internal Control
1. Inform the President of any new internal control requirements if the company decides to go public. As per the accident that happened in the company about some employees was viewing pornography on company computer and he had a hard time to get his employees admitted that they were the one who doing it. He should use limit access by individual passwords for each person to log in the computer systems. To make sure that which person was log on in the computer and do bad thing during that period.
2. Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When your advice the President, please be sure to reference the applicable internal control principle that applies. From the passage that the accountant has recently started using prenumbered invoices following by the principle of internet control activities. Please find the Documentation Procedures passage below. From the passage, the president 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. Please find the Physical Controls passage below.
Principles of internal control activities
Documentation Procedures
Companies 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 transaction from being recorded more than once, or conversely, from not bring recorded at all. Second, the control system shown that employees should promptly forward source documents for accounting entries to the accounting entries to the accounting department. This control measure helps to ensure timely recording of the transaction and contributes directly to the accuracy and
1. Inform the President of any new internal control requirements if the company decides to go public. As per the accident that happened in the company about some employees was viewing pornography on company computer and he had a hard time to get his employees admitted that they were the one who doing it. He should use limit access by individual passwords for each person to log in the computer systems. To make sure that which person was log on in the computer and do bad thing during that period.
2. Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When your advice the President, please be sure to reference the applicable internal control principle that applies. From the passage that the accountant has recently started using prenumbered invoices following by the principle of internet control activities. Please find the Documentation Procedures passage below. From the passage, the president 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. Please find the Physical Controls passage below.
Principles of internal control activities
Documentation Procedures
Companies 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 transaction from being recorded more than once, or conversely, from not bring recorded at all. Second, the control system shown that employees should promptly forward source documents for accounting entries to the accounting entries to the accounting department. This control measure helps to ensure timely recording of the transaction and contributes directly to the accuracy and