Introduction
The Office of Inspector General was set under the Inspector General Act of 1978(Public law 95-452) and established in March 29, 1989 to provide independent and objective audits, investigations and reviews of the FCC operations and programs. The inspector general therefore pioneers the detection and prevention of fraud, waste and abuse in FCC’s operations and programs. The reports and finds of the investigations, audits and reviews are compiled semi annually by the Inspector General and presented to the chairman and the United States Congress. These reports are a source of information to the chair, commissioners and United States congress on the deficiencies and general operation of the FCC. The FCC chair supervises the
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Common themes and/or trends
OIG continuously monitors FCC legislative and policy development and provide input as appropriate. Common issues, which seem to be a trend, are summarized herein and systematic strategies which may be implemented to reduce the undesired trends are highlighted. Among the recurring issues as observed in the OIG report include; a weak internal control system, slow investigations and handling of cases and non compliance of policies and procedures in presentation of financial statements.
Weak internal control System
Despite the unqualified report written by the auditors, two internal control weaknesses were identified. The internal control weaknesses were reported for both the March 2011 and March 2010 reports meaning, there is little or no attempt that has been made to take care of this problem.
The first internal control weakness that is persistent is the FCC’s financial reporting processes is inadequate manual reporting process and financial system integration. Another significant deficiency of the internal control system identified is the information technology controls of the FCC. The two weaknesses are considered to be significant deficiencies however; the auditors never specified whether the deficiencies were material. A significant deficiency in internal control is a deficiency or combination of deficiencies that is not severe than a material weakness, though important enough for
First and foremost, the accounting system used should be updated. The case stated that the system was 30 years old and that prior accounting period transactions could not be locked down, which enabled internal control processes to be bypassed. Enhancing internal
The primary piece of legislation used to regulate telecom providers is the Telecommunication Act of 1996. This paper will examine the characteristics, and point out similarities, of telecommunications providers and information services such as the internet. Additionally, regulation of telecommunications and the lack of regulation for information services will be addressed. Finally, recommendations for potential ways to regulate information services, the potential legal ramifications of such regulation, and the technical considerations regarding the recommendations will be identified.
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.
The Federal Communication Commission or FCC (1934) regulates interstate and international communications by telephones, televisions, cable televisions, radios, telegraph, CB radios, and satellite in over 50 states. The FCC is directed by five commissioners who are appointed by the President of the United States and confirmed by the U.S Senate.(3)
To conduct the audit, the firm must acquire sufficient understanding of the internal control processes to help determine the nature and timing of the audit. However, the audit is not designed to identify deficiencies in internal control or provide assurance. The firm will make the audit committee aware of any significant deficiencies that come to Anderson, Olds, and Watershed’s attention during the audit.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate (Louwers & Reynolds, 2007). We believe that the audit evidence obtained is sufficient and appropriate to provide a reasonable basis for our opinions.
The Federal Communication Commission (FCC) is also an independent federal regulatory agency, established in 1934. The FCC oversees the television, radio and telephone industries in the United States. Their key responsibilities span from giving out operating licenses for radio and TV stations to maintaining decency standards designed to safeguard the public moral. The commission is led by a five-member partisan board consisting of Republican and Democratic nominees selected by the President. ("AllGov - Departments." )
The anticipation of the Federal Communication Commissions 2014 meeting to review media ownership looms as 2013 approaches. With all the angst of a presidential election, the proverbial line in the sand has been drawn. On one side consumer groups vie for support to restrict ownership and on the opposing side are the media industries and its conglomerates opposing limitations and demanding deregulation. According to the Telecommunications Act of 1996, the FCC is required to meet every 4 years to review ownership rules to verify whether or not the media ownership rules are in the public interest.
The Federal Communications Commission (FCC) regulates telephone and internet services in the United States. In 1934, the FCC passed the Communications Act of 1934 Communications Act of 1934 which helped establish telephone service across America (Federal Communications Commission, 1934). The FCC is working today to make internet service available to as many consumers as telephones. The Communications Act of 1934 Communications Act of 1934 regulated the Bell Operating Company and this company included most of the telephone companies in the United States in 1934 (Federal Communications Commission, 1934). AT&T was the monopoly provider of telephones in 1934,Universal Service | Federal Communications Commission however the areas AT&T did not
● 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.
Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.
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
The auditors also report that they have evaluated the internal controls system of the company and according to them there is no material weakness in its system and hence they give an unqualified opinion.
The Communications Act of 1934, as amended (the "Communications Act"), and Federal Communications Commission (FCC) regulations and policies also significantly impact Comcast’s decision on the company's businesses, including cable system and broadcast station ownership, video services customer rates, carriage of broadcast television stations, broadcast programming content and advertising, package of programming to customers and other providers, access to cable system channels by franchising authorities and other parties, the use of utility poles and conduits, and the offering of high-speed internet and phone services (Marketline, 2013). Failure of Comcast's businesses to comply with the laws and regulations may result in administrative enforcement actions, fines and civil and criminal liability. In as much that laws, policies and regulations are much stricter in the U.S. this would present significant risks to the company's businesses which may affect its operating
When testing of internal controls indicates that there may be significant deficiencies, then the auditor