Walmart's Management Rule In Internal Controls

Scoping and Evaluation Judgments in the Audit of Internal Control over Financial Reporting 12.1 EyeMax Corporation . . Evaluation of Audit Differences

Walmart requires honest and accurate reporting of financial information. All financial records and accounts must accurately reflect financial transactions and events. They must conform to GAAP and to Walmart’s internal controls. No Walmart document or record may be falsified and no undisclosed account of their assets can be established (Walmart 6).

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

Kroger Co. holds management responsible for the company’s Internal Controls. With the participation of the chief executive Officer and the Chief Financial Officer, Kroger’s management conducted an evaluation of the effectiveness of the Internal Control for the company’s financial reporting. This evaluation was based on the framework and criteria established in Internal Control-Integrated Framework which was issued by the Committee of Sponsoring Organization of the Treadway Commission. Based on the evaluation, the Kroger management concluded that the Company’s

There are many rules companies must follow whenever documenting financial information or any other data which is gather during any business transactions. In order for said companies to report financial information internal controls have to be put in place as companies have to adhere to certain laws and regulations. Internal controls can be defined as a process which companies follow in order to ensure all financial reporting is done in a reliable and lawful manner. Some think of it as a system which works within a system as it plays a major role on the success of a company’s accounting system. At the organizational level, internal control objectives relate to the reliability of financial

By the end of January 2003, Wal-Mart took direct control of its factory audits for direct import merchandise. This has given Wal-Mart greater visibility

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 Securities and Exchange Commission (SEC) will not allow Wal-Mart to exclude from consideration an NLPC-sponsored shareholder proposal asking for a report on the company’s lobbying priorities. The subject matter of meetings, conversations, discussions or other communications with Investment Community Members will be limited to explanations or clarifications of publicly available information concerning Wal-Mart, will not discriminate among recipients of information disclosed by Wal-Mart or its representatives based on a recipient’s prior research, opinions, recommendations, earnings estimates or conclusions relating to Wal-Mart. In addition, Wal-Mart will

Fiscal 2008 and fi scal 2007 comparable sales includes all stores and clubs that have been

The final responsibility for the integrity of an SEC registrant’s internal controls lies on the management team. U.S. companies need to refer to a comprehensive framework of internal control when assessing the quality of financial reporting to determine that financial statements are being presented under General Accepted Accounting Principles, GAAP. The widely used framework is referred as COSO, Committee of Sponsoring Organizations of the Treadway Commission, sponsored by the following organizations American Accounting Association, the American Institute of CPA’s, Financial Executives International, the Institute of Internal Auditors, and the Institute of Management Accountants. COSO’s defines internal control as:

The company I am reviewing for this research paper is Walmart. Walmart is a global company that originated in the 1960’s by its founder Sam Walton. Mr. Walton opened his “first retail store in Rogers, Arkansas in 1962” (Walmart Corporate). The current “home office is located in Bentonville, Arkansas” (Walmart Corporate). In 1991 Walmart became a “global company when it opened a Sam’s Club in Mexico City, Mexico” (Walmart Corporate). As of this year “Walmart employs 2.2 million associates worldwide and serves more than 200 million customers each week at more than 11,000 stores in 27 countries” (Walmart Corporate).

With every company there come strengths, weaknesses, opportunities, and threats and Wal-mart is no exception. Wal-mart sits at the number one spot when it comes to retail businesses but they have had many issues; in particular labor law violations because they did not allow their employees to take required lunch and meal breaks.

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

The role of internal audit is to provide independent declaration that an organization’s threatadministration, governance and internal control processes are functioning effectively. Internal auditors deal with concerns that are essentially important to the existence and success of any organization. Unlike external auditors, they aspect beyond financial possibilities and statements to reflect wider problems such as the organization’s reputation, development, its power on the location and the approach it treats its organizations.In summary, internal accountantssupport organizations to thrive.