Consider this scenario: You own a small business with 25 employees. In your initial post, explain which internal controls you would use to protect your assets and ensure that your financial statements are accurate.
Safegaurding of assets is important in every business regardless of its size and nature of business. Controls should be placed by keeping in mind that 80% of assets consists 20% of value and 20% of assets consists 80% of total assets value. We should place high controls mostly on those part of the assets which values more.
Some of the internal controls which can be used for protection of assets :
1. Physical access controls : Access to the assets should be restricted to authorised individuals only. A separate register shall also be maintained to record the time and person who accessed to the asset.
2. Preventive controls : Segregation of duties is more important in protection of assets. For example, one person shall not maintain cash register and the same person should not have authorisation to issue payment vouchers. Therefore, we should segregate duties between two or more individuals ,so that threat to embezzlement of cash becomes low. Also we can fix CCTV cameras to monitor one's activities
3 .Detective controls : These controls include audit activities and inspection activities. These takes place after a fraud happens or embezzlement of cash happens.
4. Corrective controls : Corrective controls includes controls to mitigate the losses incurred. These include sufficient training to employees
Eventhough we place several controls ,there will be inherent risks.
These controls protect our assets which leads to accurate financial statements
Consider this scenario: You own a small business with 25 employees. In your initial post, explain...
Companies lose millions of dollars each year through employee theft and fraud. To prevent this, internal controls are implemented. We will examine the types of controls companies use, and discuss what happens when these controls are missing. Consider this scenario: You own a small business with 25 employees. In your initial post, explain which internal controls you would use to protect your assets and ensure that your financial statements are accurate.
4-1 Discussion: Internal Controls Over Assets Companies lose millions of dollars each year through employee theft and fraud. To prevent this, internal controls are implemented. We will examine the types of controls companies use, and discuss what happens when these controls are missing. Consider this scenario: You own a small business with 25 employees. In your initial post, explain which internal controls you would use to protect your assets and ensure that your financial statements are accurate. In your responses...
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You own a small business that is growing. You have just hired more employees and they need connectivity to the company’s intranet. What is the quickest and most efficient way of getting your new employees connected to the intranet?
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