Goodner Bothers Inc. 1. Internal controls should have included these controls; -Adequate security for the inventory -Better periodic verification of inventory -Segregated duties when it comes to inventory -Proper supervision for sales transactions and the procedures that they employ to record them -Proper authorization by management for inventory transactions 2. Internal control weaknesses - Lack of segregation of duties involving sales and recording -Security controls over inventory -Documents
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Internal controls are all measures taken by an organization for the purposes of protecting its resources against waste‚ fraud‚ or inefficient use; ensuring the reliability of accounting data; securing compliance with management policies; and evaluating the performance of all employees‚ managers and departments within the organization. The accounting system depends upon internal control procedures to ensure the reliability of accounting data. Many internal control procedures on the other hand make
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technology‚ which directly contributes to information technology auditing‚ internal control standards and guidelines explained by Yang (2004). Technology‚ electronic data processing‚ and information system have altered the way organizations handle its business‚ endorsing operational efficiency and assist decision-making. American Institute of Certified Public Accountants (AICPA) and the Information Systems Audit and Control Association (ISACA)‚ have provided standards to allow and deliver required
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Computer Associates Ethics Paper Brief Summary: Based in Islandia‚ N.Y.‚ Computer Associates dominated the market for mainstream utility software‚ programs that helped the computers used by big companies run more efficiently. The company also offers security & storage software. Computer Associates used variety of tricks to inflate its reported profits during the 1990’s. In October 2000‚ the company changed the way it sold software and the way it reported its sales. The Securities and Exchange
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[pic]Accounting 408 Test 2 Review 1. An auditor obtains knowledge about a new client ’s business and its industry to a. Make constructive suggestions concerning improvements in the client ’s internal control structure. b. Develop an attitude of professional skepticism concerning management ’s financial statement assertions. c. Evaluate whether the aggregation of known misstatements causes the financial statements taken as a whole to be materially misstated
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Case Study 2 -Internal Control LJB Company‚ a local distributor‚ has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The President wants to be aware of any new regulations required of his company if they go public so he met with a colleague of yours at a local restaurant. The President of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax
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Case 3.3 1. Identify and briefly describe fundamental and cost-effective internal controls that charitable organizations could implement to reduce their exposure to theft losses. Fraud has been on the rise over the past decades‚ and America’s charitable communities have not been immune to these acts. With the tremendous expanding‚ charity organizations have controlled a lot of financial and nonfinancial resources. While it is common that many small and medium-size volunteer organizations have lack
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susceptible to risks. The expenditure cycle is a subsystem of the both the cash management system and the accounting system. The other parts of the expenditure cycle are purchasing‚ receiving‚ and warehousing. Each of these subsystems should have controls to ensure that its overall objective will be
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ABE Section: 4pm Howard Street Jewelers‚ Inc. 1. Identify the internal control concepts that the Levis overlooked or ignored. In the Howard Street Jewelers case‚ I strongly believe that Levis didn’t perform any internal control. According to the internal control concept‚ internal controls to work to achieve organizational objective of effectiveness and efficiency of operations‚ reliability of financial reporting‚ and compliance with applicable laws and regulations. In this case‚ Levis should
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by Mr. Jack Lam. D. Organizational Chart Hotel Position Descriptions Board of Directors – The governing body elected by the stockholders that exercises the corporate power of a corporation‚ conducts all its business and controls its properties.
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