In accounting and auditing‚internal control is defined as a process effected by an organization’s structure‚ work and authority flows‚ people and management information systems‚ designed to help the organization accomplish specific goals or objectives.[1] It is a means by which an organization’s resources are directed‚ monitored‚ and measured. It plays an important role in preventing and detecting fraud and protecting the organization’s resources‚ both physical (e.g.‚ machinery and property) and
Premium
INTERNAL RATE OF RETURN Many companies wants to have a return on their investment in a few years and begin to evaluate their projects optimistically calculating an internal rate of real return not yielding results in the end. This does not end up being expected by the companies; According to the article the authors John C. Kelleher and Justin J. MacCormack . They suggest that there is a tendency to a risky behavior‚ Companies started to run the risk of creating unrealistic numbers for themselves
Premium Net present value Investment Internal rate of return
Justification for an Internal Control System Cynthia Kinney ACC544/Internal Control Systems June 27‚ 2011 Gary Godfrey Justification for an Internal Control System An internal control system is described as a way to control an organization better‚ minimize risk‚ reduce loss‚ and achieve goals. Two approaches‚ political and insurance‚ are used to justify the need for this type of system. Issues such as security valuation‚ asset allocation‚ optimization‚ and performance are considered with
Premium Risk Investment Insurance
understands how internal combustion systems work‚ is based on both world-class skills and ■ develops and uses calculation codes for engine and vehicle modeling and high-performance technical resources simulation‚ (supercalculator‚ test bench‚ etc.). ■ designs and develops innovative combustion systems‚ ■ communicates with respect to his/her work both internally and externally Combustion control is a key research
Premium Internal combustion engine
| |This report has been prepared to cover the assessment requirements of AAT Learning and Assessment Area ‘Internal Control and Accounting Systems.’ | |The objectives of this report are to: | |a)analyse accounting system and effectiveness of its internal control | |b) to identify the strengths and weaknesses
Premium Accounts receivable Accounting software Accounts payable
Case Study 2 Internal Control of Ljb Company |Case study : 2 | |Internal Control Evaluation | |LJB Company | | | To whom to be submitted: Prof. Kim Chung By whom to be submitted: Md.Tanvir Apon Submission Date: 02/09/2014 Table of Contents |S/L. |Description |Page No. | |1. |Preface |3 | |2. |LGB Company: Internal Control Evaluation |4-6 | |3. |References |7 |
Premium Public company Computer security Internal control
1 . What do you mean by Span of Control? Differentiate between narrow span of control and wide span of control. Describe the factors that influence the span of control. span of control is a span of supervision which depicts the number of employees that can be handled and controlled effectively by a single manager. According to this principle‚ a manager should be able to handle what number of employees under him should be decided. This decision can be taken by choosing either froma wide or narrow
Premium Management Control
INTERNAL CONTROL AND CONTROL RISK 7.1 Learning Objectives After studying this chapter‚ you should be able to Understand the basic definition of internal control. Discuss why internal controls are important to the auditor. Characterize the differences between general and application IT controls and how to reduce IT risk. Distinguish between the different components of internal control. Describe the elements of the control environment. Evaluate how managements objectives are related to risk assessment
Premium Internal control
the act and the need for such legislation. The second section provides an introduction to the Sarbanes Oxley Act section 404 which explores the provisions of Section 404. The next section on ‘Internal Controls Feature of section 404 of the Act’ provides an interpretation and the implication of internal control and the consequences that SOX 404 has on company affairs and the changes it has necessitated is discussed. The accounting profession and practice is affected by the provisions of SOX 404 and
Premium Internal control
improving accounting practices and protecting investors from corporate misconduct. SOX requires corporate executives to vouch for the accuracy of financial statements‚ and to institute and monitor effective internal controls over financial reporting. The cost of implementing an effective internal control structure are onerous‚ and SOX inflicts opportunity costs upon an enterprise as executives have become more risk adverse due to fears of incrimination. The Public Company Accounting Oversight Board (PCAOB)
Premium Internal control