Dickinson Technologies Essays

10-30 (Objectives 10-1, 10-2, 10-7) The following are general questions about internal control. Choose the best response.

Their employees are united by the strong values of accountability, respect, teamwork and integrity. They make sure that extraordinary ethical standards, and a steady commitment to safety, invade company’s organization. Some of corporate governance has found lacking as following its area;

COSO consider "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" (COSO, 2015). Internal control has a different definition, depending on the perception of the person; as a result, the outcome of misperception and different expectations cause issues within the organization. It is necessary that organizations establish a clear definition the service they need for different people, in addition to creating provisions against which business and other entities, regardless of size or classification, have the ability to evaluate their control systems and conclude how to improve

The course Fraudulent Financial Reporting and Corporate Governance of prof. Hermanson is the great oversight of financial reporting and governance issues. The students are able to understand the roles of the board of director and board committees, the critique research on fraudulent financial reporting and the cycle of fraud through real fraud cases over the world. Indeed, I recognize the importance of corporate management over financial reporting. The three main things I learned from this class is understanding of the effect of board of directors on fraud decisions, elements of fraud, and the importance of fraudulent accounting to accountants and auditors

The likelihood that the control environment will prevent misstatements arising from fraudulent financial reporting is high.

The regulators, SEC, U.S. GAAP, SOX of 2002, together with AICPA, PCAOB, and COSO concentrate on fraudulent reporting mechanisms and ways to lessen its occurrence. Inventors, public, and officials expect auditors detecting fraud to protect third parties interests. The auditors’ core responsibility is to confirm that financial statements are prepared fairly in accordance with U.S. GAAP. Therefore, auditors should comprehend real-world techniques to identify financial statement manipulation.

LJB Company management assessed the effectiveness of the company’s internal control over financial reporting as of 2011. In making this assessment, it used the criteria set forth by the Committee of Sponsoring

The course Fraudulent Financial Reporting and Corporate Governance of professor Hermanson is the great oversight of financial reporting and governance issues. The students are able to understand the roles of the board of director and board committees, the critique research on fraudulent financial reporting and the cycle of fraud through real fraud cases over the world. Indeed, I recognize the importance of corporate management over financial reporting. The three main things I took away from this class is understanding of the effect of board of directors on fraud decisions, the elements of fraud, and the roles of accountants and auditors in corporate governance.

Monitor company’s internal control function. The AgFeed case illustrates the need for the audit committee to fully monitor the internal control function. This includes consideration of issues that are outstanding before become a member of the committee. Communications with internal audit, management and external auditors can aid in apprising the committee of these issues.

Control mechanisms in the workplace will assist in the planning development for customer satisfaction and measurable milestones for improvement. Every business needs to develop and use some kind of control mechanism to operate effectively and efficiently. This paper will explore four different types of control mechanisms used by various departments at two corporations – Dixon Sanitary and WE Energies. In doing so, the authors will identify, compare, and contrast these mechanisms and determine whether these mechanisms are effective by examining the positive and negative reactions to these control mechanisms, and explain how these control mechanisms influenced the four functions of management.

Based on prior studies, there are other corporate governance features which are considered important for the monitoring mechanism. Besides, there are other motivational and conditional factors that are perceived to be able to affect board of director composition. Hence, controls variables identified from Persons (2005) and Beasley (1996) will be included in this study to investigate the relationship between board composition and the likelihood of corporate fraud.

When behavior and work procedures follow standards, and organizational goals are accomplished; we may confirm that effective control has been achieved. Let’s take a look at the company I work for, Miami Management, Inc., one of the largest property management companies in Florida that has been in the market for over 25 years. They have a preventive control system that allows property managers to identify deviations from standard performance, their causes, and proper corrective actions. This control system is based on a strong and well-conceived strategic planning process. However, implementing control is not always an easy path. Miami Management, Inc. implements a system which restricts social media and non-work related Internet access,

Management must be at forefront in encouraging that employees be honest in their work through different mediums of communication like workshops, policies, code of ethics, hiring policies, and being exemplary in what they communicate to employees. They must practice what they preach. According to Woolfell and Woolfell (1987:40) recommended that the tone set by top management is very influential in preventing fraudulent financial reporting within the corporate environment which financial reporting occurs. The management must identify and assess factors that could lead to fraudulent financial reporting. This means that sufficient internal controls should be maintained that provide reasonable assurance that fraudulent activities and financial reporting would be prevented or detected. According to Arens, Elder, Beasly & Splettstoesser-Hogeterp (2007:287) states

Fayol’s principle on authority explained that authority and responsibilities are directly proportional of each other. Authority creates responsibilities. The more responsibility one has, the more in authority one is. As one goes down the organisation, authority reduces and so does responsibility. But in the case of Semco Most of the important corporate decisions are made by employees. Supervisory people are interviewed and evaluated by their future subordinates, when they are hired. There is a complete openness of information. Company provide special classes to employees on financial analysis to make them understand the financial condition of the company and share the financial data with the workers.

The audit committee member’s perspective as to the committee’s current composition is problematic. According to SOX 2002, as least one member of the audit committee should be a financial expert. Thus, changes must be made to the current composition of the committee. Even if all committee members obtain extensive industry experience, without professional accounting knowledge, they are unlikely to detect misstatements and frauds caused by the deficiencies in the internal control system. The existence and appearance of at least one financial expert is necessary.