National Capital Trust Case Analysis

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National Capital Trust Case Analysis Who: When: Where: Internal control is a business process for assuring achievement of an organization’s objectives. Firstly, internal control plays an important role in safeguarding the organization’s assets. With carefully examination and monitor, internal control is able to discover any anomalies inside the organization, such as inventory spoilage. Moreover, internal control can help improve the efficiency and effectiveness of business processes. For example, through internal control in a manufacturing company, the manager can explore some non-value added activities. Eliminating non-value adding activities can save significant organization’s resources for better development. Additionally, internal…show more content…
NCT’s bank reconciliation of the cash received and cash deposited is not always completed on a timely basis. This will give the employees an opportunities to not deposit a cheque in time. Therefore, it is important to do the bank reconciliation on time. About the hire standard, the urgency to fill the case worker position and time constrain led to relaxed standards. Setting strict hiring standards is a good way to prevent hiring bad employees. This reduce the likelihood that the employee conduct undesirable behaviors. These standards cannot be relaxed due to the shortage of the workers, Even though the new hire has great experience in this kind of company. It could be a spy that sent from its competitive companies, or she may be fired due to the fact that she cheated on her previous company. Almost all company does not want to hire this kind of employees. Therefore, NCT should focus on these controls and make a significant improvement. NCT does not full cover all areas that need to be controlled. In the company, payments are usually authorized by the case worker and approved by the financial representative. However, when the payment is small dollar value, supporting documentation usually isn’t provided to the financial representative who approves the transaction. NCT should have some control over this procedure. If the formal documentation is costly and takes a long time, at least some memos or simply book records should be
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