Case Studies Research Project Victoria Bowman Purple Team Control Self Assessment A Control Self Assessment program, or CSA, is a technique used by management in order to assure key stakeholders that the company or organization’s internal control systems are effective and reliable. Within the Control Self Assessment program managers confirm the effectiveness of the internal controls that are in place by performing effectiveness tests that certifies that key controls are working properly. Once effectiveness testing has been completed, managers are able to detect and eliminate misstatements of material amounts if applicable. In order to complete the Control Self Assessment, senior managers will first evaluate the design of the company or organization’s internal control system. In evaluating the internal control system, senior managers identify all major processes and the key controls that are relevant to each process. Once the design of the internal control system has been determined, each of the company’s process owners will create a test script for each individual key control. These scripts are then used throughout the year to engage teams to perform tests on the system. In addition to these steps, senior managers must also find a remedy to the identified internal control deficiencies that were uncovered during the testing phase and review the lessons that were learned while also refining their CSA program. With the implementation
2. Prepare a list of the controls described in the case. What control problems are they designed to address? Are the managers interviewed for the case justified in being proud of their company’s control system? Why or why not?
The design and implementation and objectives of company controls are not adequate to meet the control objectives. The control environment control objective is ineffective. This control objective lacks a written policy on ethical conduct, is lacking oversight from the board of directors and audit committee, lacks a consistent style and philosophy from management, and lacks a strong commitment to competence. The risk assessment control objective is effective but lacks any antifraud program and controls. The information and communication control is ineffective. A virus has been detected and is affecting the files of the company. This control is lacking a strong IT department. The general controls financial reporting control objective is effective but is weak in detecting or preventing material misstatement. The monitoring control objective is ineffective; this control has need of an internal auditor.
Overall Strength: in general, the article provides structure to a concept that is very intangible by: (a) describing the nature and the functions of control; (b) segregating the MCS into categories: core control system, organizational structure, and organizational culture; (c) illustrating how to apply the control model (satisfied my approach) (d) provides a basis for designing and evaluating the system. The manner, in which the model is presented, with its use of figures, further emphasizes the structure of the model. See below on further emphasis on parts (a) -(c).
Stage 2: Test of internal controls - By testing the effectiveness of the internal controls the auditor can determine the control risk that lies within the company. The audit team can perform tests of controls by making inquiries of appropriate client personnel, examining documents, records, and reports maintained by Smackey, observing control-related activities such as the one done for the inventory procedures for returned Best Boy Gourmet dog food, and re-perform the client procedures.
Team allocation for performing audit procedures to verify that controls are operating effectively through testing techniques and sampling methodologies.
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
A concept we learned about in Business Leadership that relates to the main point in this book is control systems. We looked at the importance of control in management and learned about various different systems. In this book, systems are shown to greatly help customer service. Systems are predetermined ways to get a specific result and still ensure consistency. Andrew, the plant manager said “Systems give you a floor, not a ceiling”. Thus, a system is the sort of thing you build on, a starting point. An external control measure, for example, involves
● Monitoring — Internal control systems need to be monitored–a process that assesses the quality of the system’s performance over time. This is accomplished through ongoing monitoring activities, separate evaluations or a combination of the two. Ongoing monitoring occurs in the course of operations. It includes regular management and supervisory activities, and other actions personnel take in performing their duties. The scope and frequency of separate evaluations will depend primarily on an assessment of risks and the effectiveness of ongoing monitoring procedures. Internal control deficiencies should be reported upstream, with serious matters reported to top management and the board.
In this process, the activities performed are evaluated to determine if the corporation’s goals are being achieved by the strategies that are chosen. If the results are not satisfactory compared to pre-defined standards, management must take correctives actions to adjust the issues. This strategy stimulates the ongoing process of improving performances within the corporation. Since the environment is constantly changing, it is
Auditors should always evaluate the design and test the operating effectiveness of a company’s internal control. The key procedures of the evaluation of design are fulfilled by inquires, observations, and inspections. The same procedures can be used to test the operating effectiveness as well.
Self-monitoring is also a kind of effective behavioral treatment, which can provide feedback about whether the effect of target behaviors is working or not. As the figure shown (Figure 1), self-monitoring is associated with weight loss strongly. Patients who monitored their eating and weight most consistently had the biggest weight losses.3
The Locus of Control assessment purpose is to find out how a person thinks. This assessment enlightens a person's insight into how one behave's. This assessment is designed for a person to understand their mind and help them understand how they think and feel. After completing the assessment I scored a three which is a low score that indicates I am internal locus of control and I agree with this score. To some degree I believe that I have control over events and the outcome of my life. I feel life is about choices and I do not want to put the outcome of my life in another person's hands. The multiple intelligence assessment purpose is to provide a person with information of the best way they learn things and how to learn more. My test results shows my top three strengths are intrapersonal, social and language.
Appreciate the judgment involved in evaluating the overall internal control environment based on interview data
Trait self-control was measured with a 20-item scale adapted from the original 36-item Self-Control Scale developed and validated by Tangney et al. (2004). (e.g., “I am good at resisting temptation,” “People would describe me as impulsive” (reversed), “I’m able to work effectively toward long-term goals”). The scale showed good internal consistency (Cronbach’s α =.85). The composite score variable ranged from 1.85 to 4.60. The items of the scale can be found in Appendix 1.
Controls are measuring sticks to see if the desired goals are being met. Successful managers create parameters for their employees and implement controls within a criteria to confirm if the job is being done to standard. Case in point, I give quarterly performance counseling’s to each subordinate in my department on performance, being efficient at the job and using problem solving techniques. Controls to an extent border along the lines of micromanaging, but it can also be used to emphasize how well the subordinate is doing too. All quarterly counseling’s are not corrective in nature, but it is a great assessment tool for exceptional job performance as well. The usage of controls is part of my responsibility as a supervisor to ensure the goals are being achieved to standard.