Essay On Internal Control

1044 Words3 Pages
bulb-icon

Recommended: Effects of cyber crime in society

Internal control is the most important business practice of the company, and it ensures the accuracy and reliability of financial reporting and protects the resources from any fraudulent activities. As technology grows, the number of computer based crimes and fraud increases; however, it is possible to control this computer based crimes with effective and efficient internal control systems within the company. According to Whittington & Pany (2014), the impact of IT on the auditing process is great; therefore, the auditors should consider and understand client’s internal control, data retention and processing policies in planning and timing of the audit. Some businesses might use more user-operated computers and think that it does not require …show more content…

According to CSU-Global (2016), internal control is a process that requires series of ongoing activities and actions, and it can provide only reasonable assurance that all the organization’s objectives will be met. Therefore, the management must establish control activities that are effective and efficient within the company and including controls over technology. According to Turner & Weickgenannt (2013), there are five control activities such as: Authorization of transactions, segregation of duties, adequate records and documents, security of assets and documents, and independent checks and reconciliations. According to the auditor, only one employee did all different tasks at Norton Corporation, and that one employee authorized adjustments to the total amounts of stock recorded by the computer. In any organization, the work related procedures and tasks must be done through a specific authorization from a manager before any transaction can be completed. In addition, it was not clear that the employees of the company was well trained and understood when the general or specific authorization was needed or not. The manager must establish the segregation of duties, authorization process and practice to ensure that the guidelines are followed by the employees; that way, the company could keep the assets and documents secure and free of perpetrating fraud. According to Whittington and Pany (2014), authorization of any transactions may be accomplished by assigning to authorized terminal users an identification name that must be used before the system would accept the data and maintain a log of activities for evidence of unauthorized use. Not only utilizing the segregation of duties and authorization of

Show More
Related

  • Nt1330 Unit 6 Lab 1

    825 Words  | 2 Pages

    Auditing enhanced the security in an infrastructure by giving Systems Administrators a closer look of events occurring in their infrastructure. It gives them a history of a certain user’s or computer’s activates and allow them to watch out for intruders’ events and preventing unauthorized access to a certain object in the infrastructure. Best practices of auditing are making an auditing plan at first where Systems Administrators can define what items to audit. In most cases, Systems Administrators should at least archive security logs and audit them, audit login activates, and audit applications logs. Additionally, policy change events must be audited to insure that users can never change the Local Security Authority (LSA). This auditing option allows Systems Administrators to insure that users do not go around enforced polices and cause a security issue to the

    Read More

  • Homeland Security: The Mission Of Homeland Security

    1035 Words  | 3 Pages

    Security helps the organization meet its business objectives or mission by protecting its physical and financial resources, reputation, legal position, employees, and other tangible and intangible assets through the selection and application of appropriate safeguards. Businesses should establish roles and responsibilities of all personnel and staff members. However, a Chief Information Officer should be appointed to direct an organization’s day to day management of information assets. Supporting roles are performed by the service providers and include systems operations, whose personnel design and operate the computer systems. Each team member must be held accountable in ensuring all of the rules and policies are being followed, as well as, understanding their roles, responsibilities and functions. Organizations information processing systems are vulnerable to many threats that can inflict various types of damage that can result in significant losses (Harris, 2014). Losses can come from actions from trusted employees that defraud the system, outside hackers, or from careless data entry. The major threat to information protection is error and omissions that data entry personnel, users, system operators and programmers make. To better protect business information resources, organizations should conduct a risk analysis to see what

    Read More

  • Essay On Executive Functioning

    809 Words  | 2 Pages

    Executive functioning is the new “hot” umbrella term used by teachers, counselors, and parents to describe a range of learning and attentional problems. Recent neuroscientific research on children and adults implicate failed executive functions, or their lack of engagement, not only in school-related performance issues, but in dysregulated emotional states experienced by those without executive function deficits. Such states are characterized by limited capacity for thought and reflection and automatic, reflexive reactions (Ford, 2010), similar to children with executive function deficits.

    Read More

  • Essay On Insubordination

    1185 Words  | 3 Pages

    Insubordination is a problem that the military, workforce and our education system can face on a day to day basis. Insubordination is the defiance of authority or the refusal to obey orders. Words that have similar meanings to insubordinate include "rebellious", “troublesome” and “defiance”. While insubordinate people don't follow orders, rebellious people willingly defy them. Troublesome people just cause trouble by not following directions or rules and people who are defiant purposely refuse to follow any directions what so ever.

    Read More

  • Personal Philosophy Of Supervision Essay

    1111 Words  | 3 Pages

    Personal Philosophy of Supervision Beliefs and Philosophy School administrators are important in setting the path for a successful school (Glickman, et al., 2014). The principals could play a dynamic leadership depending on how they exercise their beliefs of the organizational and social environment (McNair, 2011). The principals are the primary facilitators for developing the foundations in learning that will last, to manage the student’s performance at schools, and seeking the improvement at school that will cause great impacts in school‘s education (Gordon,1989). In the recent years in the U.S., education has change in a more cultural diversity population, it is imperative that school supervisors, are trained to encounter this cultural issues, but also assisting others with the opportunities to develop appropriate abilities to deal with different cultures (Glickman, et al., 2014). Even though this increasing awareness of the multicultural issues, many supervisors are not being trained how to deal with this issues in the daily practice.

    Read More

  • Wayland Manufacturing Company Case Study

    887 Words  | 2 Pages

    The ITGC regularly handle program changes, development, and access as well as basic computer operations. A poorly designed IT framework and accessibility protocols increase the company’s susceptibility to internal and external attacks, which result in the loss valuable financial information or its utilization to commit and conceal fraud. In asset misappropriation for example, an individual with access to the company’s accounting software has the opportunity to commit and conceal fraud. For example, Wayland Manufacturing Company’s accounting department oversees the maintenance of the Accounts Payable and Purchases general ledgers. Therefore, Newbaker is responsible for recording invoices and cash disbursements. Therefore, he has the accessibility to modify the company’s vendor list to include fictitious vendors that increase the likelihood of payment for fictitious invoices (Fraud Risk Assessment n.d.) (Eikel 2008) (Arens, Elder, & Borsum

    Read More

  • Autonomy In The Workplace Essay

    696 Words  | 2 Pages

    According of the studies making by Harvard Business Review, the workers in all the departments of jobs are having problems with their efficient and productivity in the work, because many of them are not autonomous in the jobs that they do. They are only governed by a defined schedule and in which if they do not follow the steps that its say, they would have future problems with the bosses and with the companies. Nowadays, workers prefer a workspace in which they can make their own decisions, no matter how small it could be, because they feel they are in a more comfortable workspace in which they do not feel oppressed or sluggish. At a working level, the autonomy that could be provided to the employee can be a great outlet for the oppression that has daily life and thus improve their performance.

    Read More

  • The Agency Essay

    1701 Words  | 4 Pages

    THE AGENCY What’s behind a convenient death? A group of hired assassins. CONCEPT: THE AGENCY is a professional series about hired assassins. Their moral values are power and money.

    Read More

  • Self Management Essay

    2023 Words  | 5 Pages

    According to google the definition of self-management is “the management of or by oneself; the taking of responsibility for one’s own behavior and well-being”. A simple and straightforward definition. After reading “Emotional Intelligence for Project Managers” by Anthony Mersino, it allowed me to get a deeper, more in-depth and true meaning to what Self-management is. So, exactly what do I now understand about self-management? Self- management isn’t just simply managing your emotions and behavior. It’s about managing, understanding, knowing, and controlling one’s emotions, behavior and self. Why is it so important to manage our emotions? Managing our emotions is the key to managing ourselves and living a better and happier life. Especially

    Read More

  • Reflective Essay: The Locus Of Control Assessment

    432 Words  | 1 Pages

    The Locus of Control assessment shows how much a person believes they have control over the events that occur within their life. However, I am a person that is multitasking I prefer to work alone so I can hold self-accountable for my actions, although the field I am employed in requires my working with a team. I retain shared information, think it over then discuss to see if new options arise. My score was a 4 which to me means I am a person with an internal locus of control. However, a person with external locus control blames the events in their lives on outside forces (Paul et. al, 2017). Moreover, Multiple Intelligence assessments is an assessment which shows the different ways a person learn which include eight bits of intelligence that influence the way person processes information.

    Read More

  • Organizational Control

    1881 Words  | 4 Pages

    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...

    Read More

  • Essay On Responsibility Of Employees

    1143 Words  | 3 Pages

    Another large debate in the issues and impacts of obesity is the responsibility of employer’s. Especially for those whose obesity comes from a sedentary lifestyle. Or perhaps need the preventative measures of keeping obesity at bay. A hot topic on the rise is whether or not employers should be mandated to give employees a work-out period in their schedule. The employers could offer employee’s incentives for utilizing resources (a company gym, discounted memberships, and dietician, walking a company track) and by using the resources keep costs low. Though initially it could be costly to take on the responsibility to offer extra incentives to employee’s it could offer long term potential savings. (Villareal, Apovian, Kushner, and Klein 2005) Those whose companies offer various programs and actively engage in them express more happiness, productivity, a greater quality of life, and overall better health. Better health allows for employee’s to serve their employers better. They use less sick pay, keep insurance premiums low, and are more likely to be in tune with their daily job. So while the initial cost may be high, the long term financial gain of a happy, healthy, productive team is hard not to invest in!

    Read More

  • Essay On The Control Process

    1242 Words  | 3 Pages

    This report examines the Control Process applied by different companies, they use the control process to make sure that, the whole departments are working as better they can, the control process improve better benefits to the company, work place, employees, customer and directors. The control process is to maximizing productivity and minimizing costs to achieve their goals. The finding in this report is based on books and Internet sources. This report recommends that, the control process is the process to achieve the goals and also to planning the future.

    Read More

  • Self Control Essay

    1084 Words  | 3 Pages

    The development of the human brain is largely based on relationships acquired during the first few months of life. Traits that a child is born with differ from the ones that he or she gains from an outside environment. The types of things that effects the acquirement of these traits is the environment that the guardian provide, and the interaction between baby and guardian in that environment.

    Read More

  • The History of Auditing

    3399 Words  | 7 Pages

    Auditing has been the backbone of the complicated business world and has always changed with the times. As the business world grew strong, auditors’ roles grew more important. The auditors’ job became more difficult as the accounting principles changed. It also became easier with the use of internal controls, which introduced the need for testing, not a complete audit. Scandals and stock market crashes made auditors aware of deficiencies in auditing, and the auditing community was always quick to fix those deficiencies. Computers played an important role of changing the way audits were performed and also brought along some difficulties.

    Read More

More about Essay On Internal Control

Open Document