Acct 504 Case Study 2

“The control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all other components of internal control, providing discipline and structure.” The Committee of Sponsoring Organizations of the Treadway Commission (COSO) published the Internal Control–Integrated Framework in 1992. As summarized above one can see the importance of the implementation of an effective control environment, as it sets the foundation for the other 4 components of internal control. The control environment is made up fundamental smaller components. The ones that were particularly relevant to BMIS are the use of board of directors and audit committee, management philosophy and operating style, and human resource policies and practices. If management doesn’t prioritize control, then the rest of the organization will not put precedence on following policies and procedures either. This was clearly evident at Bernard L. Madoff Investment Securities LLC (BMIS), and ultimately led to their downfall.

1. To have a strong internal control system, a business must have good administrative controls. Administrative controls include: A. B. C. D. the reconciliation of the bank statement. the accuracy of the recording procedures. assessing compliance with company policies. maintenance of accurate inventory records.

Leadership: She is responsible for being a supporting trainer to the Lead Technician on the evening shift.

In advising the board on whether this is a financially sound decision; I do not think that this would be a great decision for the community to make, and would risk the district losing several millions of dollars over the next three years. With the five percent increase year one over the current salary schedule, and only a two percent increase in revenue the district would lose $91,123. This is because of the increase in salary, retirement, and social security; mixed with stagnate insurance cost, and only a 2% increase of revenue would equate to the district losing 91,123 in the first year.

Having internal controls is one thing, but how the company evaluates that control is a matter all by itself. Being an independent auditor, it is our job to understand an entity and

Terrance and I had a brief meeting before he met his ACCT 220 tutor. He needed to work in two assignments for that class which are due on Sunday (10/29). Terrance and I tried to make an appointment with Terrance’s academic advisor, but it was not possible for him to make this appointment. We will try to make this appointment during our next meeting.

A bargain that is in good faith should be directed towards entering into an agreement. Any party that introduces unrealistic conditions is said not to be in good faith. The negotiations between the company and the union did not result in an agreement, even after eighteen meetings were held in a time frame of eleven months. The company is to blame for the failure to enter into an agreement due to the introduction of conditions that were unfavorable to the union. An agreement can only occur when the parties involved are ready to compromise. The company was not ready to compromise, thus making it right to conclude that it was not in good faith.

Responsible for U.S. income tax compliance, sales and use tax compliance, property tax compliance, audits, and special projects. Also, responsible for assisting Tax Director with quarterly and annual income tax provision calculations. This position is hands-on and the qualified candidate should be self-motivated. Attention to details and accountability are essential.

I’d suggest to her to have her employees trained for the prevention and detection of fraud and give her the important internal control needed to prevent and detect fraud. The preventive control would be to have segregation of duties or dual custody to ensure that everything is accurately recorded and presented, another is she should implement a system of authorization to verify all transactions, inflows and outflows of cash, are recorded properly and have physical safeguards and not have one employee have unlimited access to everything as this will probably lead to theft and manipulation of data. For her detective controls, the organization should have independent checks to see if there is any suspicious activities or information found within the company and lastly, she must have documents and records of everything as this will be used as evidence when fraud is detected. (Albrecht et. al 2014, p.

There have been some positive and negative issues arise in regards to their internal controls. However, the LBJ Company needs to be acknowledged for what they are doing

Yes, she can because she is counted as minor as of now. As long as she is under 18, she can able to disaffirm any kind of contract. Because public policy of protecting minor is the basis of capacity rules (Barnes 2017: 220). Even though her mother signed the contract by representing her, she still can disaffirm the contract. If she became an adult by the time she disaffirming the contract, she needs some reasonable time to do that but she can still disaffirm the contract if she applied during that time. However, there are some consequences of disaffirming the contract, such as return any possession that have received from adults. On the other hand, if she did not disaffirm after attaining majority then the contract has become ratified, which means she lose her right to disaffirm the contract.

Internal controls represent an organization’s processes and procedures used to meet its goals and objectives and serve as a defense in safeguarding assets and preventing and detecting errors, fraud, and abuse. Effective internal controls provide reasonable assurance that an organization’s objectives are achieved through (1) reliable financial reporting, (2) compliance with laws and regulations, and (3) effective and efficient operations. The passing of the Sarbanes-Oxley Act of 2002, as well as the numerous corporate frauds and bankruptcies over the past decade—including some

Internal controls prevent errors and irregularities from happening. If errors or irregularities do happen to occur internal controls will help ensure that they are detected in a timely manner. Internal controls also encourage adherence to prescribe policies and procedures. Internal control are also put into place in order to protect employees by outlining tasks and responsibilities, providing checks and balances, and also from being accused of misappropriations, errors and irregularities.

The framework describes internal control as a process designed to provide reasonable assurance regarding the achievement of objectives in the following categories:

Effective internal controls protect a company’s assets, maintain compliance, improve operations, prevent fraud, and promote accuracy in financial reporting. In 1992 the