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Canyon Rental Case Summary

Decent Essays
It’s clear that the Canyon Rental is facing different challenges that are related to its interal control systems. The internal control is a significant aspect of the financial and business process in all of the organizations. When it comes to the internal control so it can be effective, it must have different elements. The first thing it should have an organization to establish a strong controlled environment. The controlled environment is created through the development of a strong administration process that is influenced control of all the employees. Then the manager must develop departmental control units at the different departments and units. This is helpful when it comes to enhancing the discipline and structure of internal control processes.…show more content…
It is recommendable to focus on risks occurring at all the organizational levels and implement appropriate strategies. All of the risk that is identified will be evaluated properly. It has identified that managing change calls for the strong risk assessment that affects the internal controls. A result would be a risk assessment would process which would guarantee a better internal control system. The actions are to make sure that all of the organizations functions to be performing well. This would include an approval, verifications, security of assists and the authorization, and segregation of roles along with others. The sales clerks will also enhance the control with depositing the revenue into the bank along with recording to the account records. One situation like not allowing the purchasing manager to take on both roles like ordering and approving the order payment. When this happens it can lead the company to being exposed for theft or fraud. Making one person being in charged for each of the roles such approving the order payment. Making sure the checks are uniquely signed so there is no fraud should all is in the owner’s role. The control of the activities makes sure the business operations are being performed
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