Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Issues of ethics within the workplace
Issues of ethics within the workplace
Issues of ethics within the workplace
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Issues of ethics within the workplace
This memo is in response to your request concerning how to establish the appropriate tone. The purposes of this memo are, first, to explain the meaning and significance of evaluating control environment; second, to discuss the integrity and ethical values; third, to show the organizational structure; fourth, the importance of establishing commitment to competence; finally, to establish and segregate the division of responsibilities of finance and accounting department in order to establish the appropriate tone. Control Environment Control environment is the step engaged by a company to prevent fraud; both misappropriation of assets and fraudulent financial reporting. It has an equal role in assuring control over manufacturing and other processes. As a result of fraudulent financial reporting, the objective of accounting company is to study the causal factors that are associated with fraudulent reporting and to make recommendation to reduce its incidence. COSO emphasizes that internal control is a process to an end, and not an end in and of itself. The process is effected by individuals, not merely policy manuals, documents, and forms. By including the concept of reasonable assurance which recognizes that the cost of a company’s internal control should not exceed the benefits expected to be obtained. The control environment sets the tone of the company by influencing the control awareness of individual. It may be viewed as the foundation for the other components of internal control. The effectiveness of internal control depends on the integrity and ethical values of the personnel who are responsible for creating, administrating, and monitoring controls. Integrity and Ethical Values Integrity and ethical values are very importan... ... middle of paper ... ...cide what skills are required to appropriately perform job responsibilities. Second, it must staff those jobs with individuals who have the needed skills. Trade-offs can be made in fulfilling these step, such as placing a less experience person in a demanding job and providing that person with extra supervision. Develop a matrix management in other to share authority. Delegate authorities in other to accomplish the organization’s goals, and make sure that people who are making decisions understand that they will be responsible. Works Cited Auditing & Assurances Services by Messier 9th edition 2 (COSO Internal control Framework, Executive Summary) 3 http://www.isaca.org/Journal/Past-Issues/2009/Volume-3/Pages/Tone-at-the-Top-Is-Vital1.aspx 4 http://www.coso.org/documents/990025P_Executive_Summary_final_may20_e.pdf 5 www.journalofaccountancy.com › May 2004
Internal controls is defined as a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance
ensure that management is doing what it can to establish means of effective internal controls by having to report on them.
and competency to perform that skills that were delegated. The tasks that are delegated must fall
Determine the resources required, ensure adequate resources are provided, focus on the organization’s priorities, and the importance of documentation.
The managers of the various units or sub-units, or sections of an organization should know not only the objectives of their unit but should also actively participate in setting these objectives and make responsibility for them.
Controlling in management is a function of management that is concerned with making sure that all other functions of the management are put in place and operated effectively. Controlling ensures that it has taken into consideration the monitoring of the output of the employees as well as the establishing standards of performance that will guarantee that the performance of the will always meets the set standards (Spellman,
In this approach, the focus will be on the internal control objectives so that the control design can be well assessed. First, the auditor will define the control measures and objectives and then find out which measures already installed meet the objectives (Tyrer, 1994).
were qualified to do the job, but as far as knowing the material and having an
The companies will begin to implement its enterprise risk management system by developing an appropriate internal control and corporate governance system. In the wake of high-profile corporate scandals and subsequent regulatory legislation, reporting internal controls has become a requirement. These requirements have led to organizations viewing risk management as an area of vital importance.
The Hollate Manufacturing case provided by Anti-Fraud Collaboration has well illustrated how several common issues in an organization contributed to the fraud’s occurrence. These issues can be categorized into two major groups: ethical culture (internal aspect) and internal control system (external aspect). By taking effective actions to enhance these two aspects, an organization can protect itself against the largest frauds, which result in financial and reputational damage.
ABSTRACT: The quantity of accounting fraud cases keeps on rising. Fraud is a consistent thing that will reliably be around, and in a bigger number of routes than just a single. An extensive apportionment of organizations out there fighting fraud, either from within the organization, or from outside the organization. Knowing how to manage this is essential for an organization to be productive over an extended period of time. The investigation regarding the matter of accounting fraud will utilize sources from the web and the DeVry School Library.
These external controls attempt “to impose on the conduct of individual public servants constraints that originate from outside themselves,” (Cooper, 2012, p. 131). Although the public administrator expects everyone to follow the ethical “attitudes, values, and beliefs,” (Cooper, 2012, p. 153), addressed by the public organization’s internal controls, this may not always be the most effective solution for establishing and maintaining ethical conduct within the public organization. Thus, if internal controls fail it is then with the external controls that the public administrator can effectively establish and maintain ethical
Controlling is the fourth management function and its purpose is straightforward- to make sure that actual performance meets or surpasses objectives. It is well used for decision making and problem solving. Effective control depends on other management functions and it gives feedback to them. These functions are planning, organizing and leading. Planning sets directions and allocates resources. Organizing puts people and material resources together in working combinations. Leading motivates people to use these resources in the best way. Basically, the function of controlling is to make sure that the right things happen in a right time and in the right way.Control helps that overall directions of individuals and groups are consistent with short-range and long-range organizational plans. Also, it helps to ensure that objectives and accomplishments are coherent with one another throughout an organization. Moreover, it helps maintaining fulfillment with essential organizational rules and policies. Good example where we can see role of control is in helping to protect individual rights to become equivalent with employment opportunities at work. The control process practiced by managers includes four steps: 1) establish objectives and standards 2) measure actual performance 3) compare results with objectives and standards and 4) take actions if necessary1. The controlling process starts with establishing performance objectives and standards which means that the controlling process begins with planning. Performance objectives should be defined and associated with specific measurement standards for determining how well they are accomplished. Standards are the targets of performance. The next step of the control process would be measur...
When planning an audit, the auditor will set up a planned assessed level of control risk. The planned assessed level of control risk can be changed by the auditor. The assessed level is planed depend on the assumptions of the quality of internal control structure. The actual assessed level of control risk is set for each assertion depend on proof of the internal controls. In fact, the auditor cannot change the actual assessed level of control
• Designate staff who are responsible for evaluation and quality assurance activities, for compiling and analyzing data, and for documenting and reviewing findings.