Key within the structure of any organization, the internal control system serves as a foundation for control over both recurring and infrequent company activities, for the achievement of objectives with respect to operations, financial reporting and compliance with applicable laws and regulations. A system needs to be put in place to ensure that older items are issued first, to reduce the risk of obsolescence or expiry and a system also needs to be put into place to ensure that new supplies are ordered before stock levels run too low. Förnamn efternamn importance of internal audit and internal control in an organization - case study olga bubilek international business degree thesis bachelor of business administration. Coso internal control framework was selected to function as the main guideline for this study due to the fact that it is widely adopted by both public and private corporations across the us and europe in their efforts to organize internal control (jokipii, 2006.
Internal control system in a computerized environment (a case study of guinness nigeria plc),accounting project topic and materials. Analysis of internal control system in revenue cycle (a case study in sahid montana dua hotel) by: monica audrey jaya suwana accounting department, brawijaya university. The most basic component of the internal control system is the company management/leadership in the control environment in our opinion, it is the responsibility of top management to make it clear that the organization values integrity and that unethical activity will not be tolerated.
Sources include, studies of existing internal controls, internal auditor reports and so on control environment - the actions, policies and procedures that reflect the overall attitudes of top management, directors and owners of an entity towards internal control. Check out our top free essays on case study internal control to help you write your own essay. The foundation of a good internal control system is segregation of duties the duties of authorization (signing a check or releasing a wire transfer), custody (having access to the blank check stock or the ability to establish a wire transfer), and recordkeeping (ability to record the transaction in the accounting system) should be separated so.
International journal of arts and commerce vol 2 no 11 december, 2013 1 internal controls in the retail sector: a case study of a leading. Internal audit role and mandate the audit committee is responsible for ensuring that management has implemented an effective system of internal control to manage the. Case study 2 -internal control you are provided with the following information taken from washburne incâ€™s prepare a cash budget march 31, 2012, balance sheet.
The general objective of this study was to find out control system on cash collection in ecg and the general practical challenges of ensuring prudent cash collection for this study, the target population comprised. case study 2 - internal control 1 inform the president of any new internal control requirements if the company decides to go public as per the accident that happened in the company about some employees was viewing pornography on company computer and he had a hard time to get his employees admitted that they were the one who doing it. Abstract this project was carried out with the objective of studying the internal control system in a computerized environment in connection with guinness nigeria plc, with a view to identifying some areas of attention and development in the system. It was observed during the study that internal control actually exist in the organization, and there is internal audit department established by management to see that the internal control system are being applied as laid down by the management in all areas and divisions of the organization.
Internal control system cannot fully be regarded as effective not even when the design and implementation is properly done this is because the effectiveness of an internal control system depends on the competency and dependability of the people using it. Journal of case research in business and economics the effectiveness of internal, page 2 introduction zimbabwe revenue authority (zimra) was established in january 2001. Adedeji d b : evaluation of corporate governance influence on internal control system: a case 190 study of selected banks in south western, nigeria especially the banking industry in the area of corporate. System by which business corporations are directed and controlled2 it involves the set of relationships between a company's management, its board, its shareholders and other stakeholders.
Overriding internal control system has been identified from the study as one of the factors that can result to ineffectiveness, distresses and failure in the system therefore satisfactory internal control and auditing system that cannot be overridden should be ensured by the board, regulatory bodies, directors and management. Too many users have access to the computer system, there is a loss of internal control since users who should not be able to make changes to the accounting records can easily manipulate the data.
Internal check is a system through which the accounting procedures of an organisation are so laid out that the accounts procedures are not under the absolute and independent control of any person the work of one employee is complementary of that of another, enabling a continuous audit of the business to be made. Download full chapter 1-5 project material for final year business administration students titled effective use of internal control system (a case study of coca-cola company) view chapter one below. What are internal controls and why are they important internal controls are the procedures put in place to help achieve the objectives of the university relating to financial, strategic, and academic initiatives.