Internal Control Course Works Samples For Students

Introduction

Auditing refers to the process of verifying the financial statements prepared by a company as being a true and fair representation of the financial position of that company. Auditing therefore requires that a company prepares its financial statements first before an independent examiner; - the auditor- is called in to determine whether these financial statements are correct (Accounting Concern, 2013). Auditing is a legal requirement of all publicly listed companies in the various stock exchanges across the world. It is conducted through a set of internationally accepted auditing standards which form the template for the audit process. This process is conducted by an external ...

Discuss how the principles of internal control apply to cash receipts. 

The principles of internal control apply to cash receipts because of the need to monitor and control it. Since cash receipts are one of the most important assets of a company, it is essential that there be policies and formal procedures to monitor and control it. Several principles of internal control are applicable to cash receipts such as assigning a person or persons responsible for the cash receipts and the maintenance of its records, making sure that the person/s assigned to the custody of cash receipts is different from those who keep the accounting records. Moreover, technological controls like cash registers, ...

Investigative Procedures

Internal controls are important in detecting and preventing internal and external fraud. One of the objectives of an internal control system is to ensure the company assets are safeguarded from fraud, waste or other irregularities (Pfister, 2009, p 30). Internal controls are based on the concepts of segregation of duties, authorization limits and proper records or documentation of transactions. The internal controls also ensure physical security of the company assets. The detective internal controls include reconciliation of branch accounts and independent verification of transactions (Needles & Powers, 2010, p 264). However there are inherent limitations of internal control systems. They may ...

Limitations of the internal control systems

Internal controls are the procedures that the management institutes in the company in order to ensure the operations are running smoothly. The objective of implementing an internal control system is to ensure effectiveness and efficiency in the business, enable management detect, prevent and correct irregularities and ensure the organizational assets are safeguarded from misuse or theft. The internal control system however has some limitations. They are events that occur that will prevent the system from accomplishing the mentioned objectives (Pfister, 2009). The three inherent limitations of the internal control system are:
1) Collusion
One of the crucial ...

Limitations of the Internal Control Systems

According to SA 400/AAS-6 Risk Assessments and Internal Controls, internal control systems can provide only reasonable, but not absolute, assurance that the objectives of internal controls are achieved because of the following inherent limitations (Ainapure& Ainapure, 2009)
Managements may attempt to keep the cost of an internal control below its expected benefits

Most internal controls are directed at usual transactions

There is a possibility of human error due to carelessness, misunderstanding, lack of knowledge etc.

There may be collusion among employees and/ or outsiders.
A person responsible for exercising an internal control may abuse that responsibility.
Procedures may become inadequate due to changes in conditions.
...

Winford Plc is a company that has been awarded a contract by Westriver Borough of operations of the local swimming pool. In order to manage the sales and revenue generated by the services offered, an accounting system, has been developed. The main components of the new system in relation to sales revenue and tickets from vending machines will include principal documentation, the processes involved and the records to be kept (Champlain p.45).

The Principal documentation of the new system will be made up of two parts. The first part is the user documentation. The main purpose of the user documentation is ...

Winford Plc is a company that has been awarded a contract by Westriver Borough of operations of the local swimming pool. In order to manage the sales and revenue generated by the services offered, an accounting system, has been developed. The main components of the new system in relation to sales revenue and tickets from vending machines will include principal documentation, the processes involved and the records to be kept.

The Principal documentation of the new system will be made up of two parts. The first part is the user documentation. The main purpose of the user documentation is to assist ...

- The sales principal documentation, processes, and records that should be put in place.
In order to achieve maximum benefits the process should be clearly outlined to follow a certain predetermined and generally accepted code. Winford services Plc will adopt a real time system for the entire swimming pool activities from the single visit tickets, seasonal tickets and the vending machines. Real time accounting systems will process and record individual transactions immediately as they occur and therefore there exists no time lags between the transaction occurrence and recording.

The real time ticketing procedure will be initiated in a manual step, whereby ...

PART I.

A bank reconciliation statement is a statement that explains the difference between the balance at the bank as per the cashbook and balance at the bank as per the bank statement . Simply put it is a statement that explains the difference between the cashbook balance and the bank statement. The functions of a bank reconciliation statement are:

The differences between the bank statement and the cash book often arise from either timing of the transaction recording or from errors made by the bank or by the business.

a. Timing differences: This gives rise to items that:

i) Are recorded in the cashbook but ...

About the report

The report is based on analyzing the financial performance and accounting policies for Starbucks Corporation. While the financial performance of the company will be evaluated using the tool of ratio analysis for the period of two years, the accounting policies of the company will be discussed using the latest annual report.

Accounting for assets, liabilities and equity

Note 1 of the financial statements discusses the procedures through which the company accounts for its assets, liabilities and equity. As for accounting assets and liabilities of the company, the company uses the provisions of Fair Value Accounting, under which fair value of the assets and the liabilities ...

Cejudo Cordoba, R. (2013). Making Sense Of Doing Wrong: On The Justification Of Compromise Decisions. Crítica , 45 (135), 29-53. Retrieved from http://eds.b.ebscohost.com.proxy-library.ashford.edu/eds/search/advanced

This paper holds that compromises are types of agreement and types of decision. Its major objectives are the following. First, is to identify the formal organization of compromise situations (CD), or dilemmas where some CD cannot be avoided that includes jeopardizing the integrity of the maker of the decisions. Second, that by the notions of Amartya Sen’s of the basic and compulsive judgments and create a CD in a condition of compromise that is justified be morally. It concludes that the justified compromise situations involve rationally justified moral regret that assists to bridge the gap between consequentialism and deontology, respectively.

Cohen, M. A. (2012). Empathy in Business Ethics Education. (C. MacDonald, & A. Marcoux, Eds.) Bus Ethics J Rev , 1 (18), 113–119. Retrieved from http://dx.doi.org/10.5840/jbee2012918.

...

In order to perform the analysis of the Annual Report we will take the Juniper Networks’ Inc. annual report (also known as Form 10-K) for the fiscal year ended December 31, 2011 as an example. The report provides detailed information on company’s business and its operations, presents analysis of financial statements and risk factors throughout the year, and depicts the structure of corporate governance within the company. Annual Report consists of 4 major parts. Part I defines Juniper’s area of expertise and major milestones in its history, as well as potential risk factors which may affect the ...

Benefits

A balance scorecard has a number of benefits to companies depending on a number of factors. Key among these factors is the use to which the balance score card has been put. A balance score card can be used in operational control and strategic management among other functions.

Used in enhancing the operational control

When used in enhancing the operational control function, the balance score card has several benefits which include increasing the effectiveness with which performance improvement initiatives are monitored; improving understanding of the processes in order to spearhead the process of setting and achieving the organization’s goals. The balance scorecard is very effective in ...