Internal Control Systems
Internal Control
This paper examines the premise that, within any organization, there are inherent limitations of internal control systems. Internal controls are established to meet certain business requirements, and are intended to:
Protect an organization from waste, fraud and inefficiency
Ensure the accuracy and reliability of accounting and operating data
Secure compliance with the organization's policies
Evaluate the performance of units within the organization (Kansas State University, 2003).
Given these goals, it can be seen that internal controls relate to good business practices.
The challenge of establishing and maintaining internal control lies in the fact that there is just no such thing as the perfect control system. Given that the cost of implementing a control should not exceed its expected benefit, then that constraint in itself implies an upper limit on what is possible for an organization to implement. As Trenerry (1999, p.20) observes, "Most internal control systems are cost-effective and are designed with a certain cost/benefit ratio as a limitation. This means that some errors will never be identified."
In practice, there are various other limitations on internal control as well. In addition to budget constraints, the list of possible limitations on internal control includes staff size. Another constraint is imposed by the element of human error, misunderstandings, fatigue and stress. Still another is the desire to commit fraud, theft, or embezzlement. Many internal control systems cannot detect a cover-up by two or more people acting together...
However, in the most recent theory of evolution which discusses the living world appears as the result of chance and an output of different randomly selected natural mills. This kind of development came to present as a result of the need of more subjects or topics in areas such as cybernetic, general system theory, information theory, theories of games which is needed in most decision making process in line
Systems Implementation System Implementations Describe the company, the business problem the company was addressing with the system implementation, the system chosen to implement, and the company's rationale for selecting the system to solve the problem. Wal-Mart, a company that enjoys a significant market share in the U.S. food industry, rolled out its multi-phased project. This marked the beginning of implementing the company's long ditched in-house IT systems, which favored their operations with vendors.
Systems Design Project Change is integral to the survival of any commercial enterprise in today's globalized, technologically advanced business environment. This requires stakeholders to have personal and organizational transition skills to attain the desired change for future success (Hughes, 2006). Strategizing drives organizational change giving it direction through activities (Thornhill, Lewis, Millmore and Saunders, 2000). Internal and external environmental considerations are both relevant; along with change management required to align with
Internal Controls Organizations have the responsibility of accounting for all of their financial and operational data in an effective and efficient manner that is in compliance with all regulations as well as industry practices. Having a set of internal controls in place can help streamline an operation which provides a level of efficiency as well as offers protections again various risks. The SEC has been in an increasingly important role and
Other people simply want to live beyond their means and see committing fraud as the way to receive extra money so they can continue to live a lifestyle they would otherwise not be able to afford. If they are angry at their managers or hate their jobs, there is also the possibility of committing fraud simply to "get back at" the person or persons they feel have slighted them.
Control Mechanism: Advance Financial Management Real corporate governance and financial control comprise of the utilization of monitoring and inducement mechanisms to bring into line different interests that are between managers and shareholders and urge the creation of shareholder value. Monitoring is not just a simple mistake, nor a conventional control, but founded on the control monitor. The United States, World, Com Enron, Lam Tin, China's Guangxia, came from magnificence into ashes,
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