Internal Control and Risk Evaluation

1223 Words5 Pages


INTERNAL CONTROL AND RISK EVALUATION PAPER Many businesses are concerned with information technology risks. Many organizations are concerned with different types of risk and attempt to control risk as they are assessed. In order to control risk, organizations must create control environments that set the tone of employee awareness and promote operational efficiency. One attempt to control risk is through risk assessment. The purpose of risk assessment is to identify organizational risks and evaluate additional or specific control procedures. The purpose of this paper is to analyze and assess the risks within the flow charts of accounts payable, accounts receivable,
…show more content…
Major changes such as name, birth date, direct deposit, mailing address, or social security number cannot be changed without employee signature, supporting or witness documents, and requested change forms.

Other internal controls outside the system Kudler Fine Foods can also benefit from implementing a few general control procedures outside the system. For example, written procedures should be available and initialed by employees concerning how inventory is to be physically recorded and input into the automated system. Restrict the number of employees who have keys to the premises. Physically lock up and guard merchandise that is of high value or that can be easily converted into cash. The use of surveillance equipment or cameras can be used to monitor physical access to inventory and other company properties such as equipment. Provide procedures for identification of slow moving or damaged inventories are another internal control that could be incorporated outside the automated system. To prevent payroll related fraud, Kudler should implement an id process when employees are hired. A current photo identification document should be scanned into the employee file with verified address, and other vital information concerning the employee. Notification should be given to management of employees opting out of direct deposit payment and must obtain

More about Internal Control and Risk Evaluation

Get Access