Internal Control at Ljb Company

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.

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

Internal control is one of the integral parts of an organization. It is a system which controls different types of risks,

So what are internal controls? And why are they so important? Internal controls describe the policies, plans, and procedures

Internal controls are vital to any company’s business and financial sustainability. Internal controls consist of measures taken by a company safeguarding against fraud, and theft. Internal controls ensure accuracy and reliability in accounting data, and secure policies within the organization. Further, internal controls evaluate all levels of performance. These are addressed with five principles

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 are to be an integral part of any organization's financial and business policies and procedures. Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization. Internal controls are simply good business practices (Strauss, 2003). And, since internal controls can have many more meanings in the world of accounting, the more we understand what were dealing with, the better we can analyze internal

Internal controls are the methods used in businesses to examine the assets, minimize errors, prevent fraud , and to assure management policies enacted. accounting controls also provide a safeguard for the company assets by accurate financial records. The internal controls are intended to provide certified transactions that are recorded in the financial statement preparations.

Internal controls are in place to protect entities against theft from dishonest workers and outside predators. They are also an accurate series of checks and balances and are in place to find discrepancies.

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

Since the implementation of SOX, companies were required to establish effective and efficient internal controls in order to be in compliant with the SEC requirements. A company that establishes a strong, effective internal control system finds it helps with the facilitation of initiating, authorizing, recording, processing, and reporting financial data consistently in agreement with GAAP. Companies with a strong set of internal controls will help companies ensure the financial data they are reporting is accurate and truthful. According to COSO internal control is defined as “a process, effected by an entity’s board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of the following objectives: 1. Reliability of financial reporting, 2. Compliance with laws and other regulations, 3. Efficiency and effectiveness of business operations, and 4. Protection of property” (Kanagaretnam et al., 2014 & Kapic, 2013). Additionally, internal controls contain policy and procedures that assist the company and management with smooth operations of all daily business functions.

The internal controls of a company show the extent of adherence to accounting standards and internal auditing standards as postulated by the IASB. In the case of Smackey Dog Foods, we realize that there are so many issues pertaining internal controls. The company thus has hired external auditors to perform an audit of its internal operations to reveal all the perceived weaknesses in internal controls and provide recommendations for improvement.

Internal controls can be taken as any action taken by an organization to help enhance the likelihood that the objectives of the organization will be achieved. Every corporate body has a policy to maintain an effective internal control mechanism relating to its financial statements and financial reporting processes, internal and financial reporting principles, policies and systems, independent auditor qualification and independence, internal audit function and independent auditors ' performance, compliance with legal, regulatory, corporate governance requirements (Kim, 2004). The internal control mechanisms performed under the governance and organizational structure established by the company’s board of directors and senior management and in which all the individual employees of the company must take part in. This assists in ensuring proper, efficient and effective performing of the company’s activities in accordance with the management’s strategy and policies and applicable laws and regulations and to ensure the integrity and the reliability of the accounting and financial system and timeliness and accessibility of information in the data system (Kim and Nofsinger, 2007).

What is a system of internal control and what objectives is it designed to fulfil? In your view, how relevant is an organization’s culture and value system in achieving the objectives of a system of internal controls?

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