Question

For the following situation, identify and describe at least three risks. For each risk, suggest two types of internal controls to handle the problem:

Damian Information Inc. is a company that has been operating for four years in the area of ​​information processing and software development, serving a number of small companies in the western states of the United States.
As its customer base has grown, the company has increased its number of employees, currently employing 30 people. The company is considering the possibility of leasing the services of some employees, hiring them through a labor agency. Currently there are more than 400 companies that are dedicated to this activity, representing more than one million employees.
The main clients of these companies need less than 100 employees.
If Damian Information Inc. decides to enter into an employee service lease agreement, all of its current employees will become employees of the service agency and then their services will be contracted again by Damian Information Inc. (CMA adapted, June 1994).

Note:Could you please don't use your handwriting to answer this question to be easy for me to solve...Thanks

Answer 1

Answer :

Accounting information system :

Accounting information system (AIS) is a structure that a business uses to gather, store, oversee, process, recover and report its monetary information with the goal that it very well may be utilized by bookkeepers, experts, business investigators, administrators, (CFOs), evaluators, controllers and assessment organizations.

Internal controls :

The course Internal Control and Accounting Information Systems is a presentation into the key ideas and methods of inside control, for example, data quality, the COSO control structure, IT controls and authoritative controls.

This term can be alluded as the controls connected by the administration in the business association which gives sensible confirmation that the business will accomplish characterized objectives and will satisfy certain objectives.It is a demonstration to control the business taking right choice by watching the reports acquired from bookkeeping data framework.

Domain information INC. is a four year old information processing and software development company serving a number of small clients i the midwestern united states.The hazard in regards to the exorbitant renting costs is overseen by making the agreements with the value tops and controlling the headcount.The decline in the inspiration of the laborer can be handled by the looking over of worker fulfillment and doing assurance boosting exercises.

The issue of temperamental renting firm can be handled by the creation legitimate foundation inquire about and powerful capability process.