Internal Cont

rolsMemorandum TO: Mr. Tim Tebow (President LJB Company) FROM: Gary Player Spongebob Consulting LLC CC: Board of Directors LJB Company DATE: butt against 26, 2012 put in: Review of inseparable Controls Introduction: Mr. Tebow, the be agreement provides businesses with a uniform way in which to intention your data and fiscal instruction. The three main areas deep down the write up system of analysis, design, and murder must be complemented with a system of internal controls.  These Internal Controls, (IC) are a system within the company system that play a make out power in the supremacy of the accounting system.  The internal controls protect your businesses from clapperclaw and fraud. IC ensures that the information you are receiving is accurate and timely, and that in all(a) in all regulatory requirements are existence met.  The following is a picture summary of what IC entails, and how it applies to your business. 1. there are five key el ements of internal control: * environmental control * Risk estimate * Control activities * Information and communication * Monitoring.  Each area contributes an all-important(a) part of the control system as a whole, and without all of the key elements present, the control system whitethorn not be effective.

Environmental control examines direction and employee attitudes and behavior.  The objectives of charge will set about upon employee behavior and attitudes throughout the business. If your main objective as concern is to achieve certain sales levels at all costs, this ma y dissuade employees from adhering to the in! ternal controls in place, and encourage achievement of what management wants, regardless of any consequences.  Risk assessment incorporates a businesses heftiness to analyze business risks, estimate their importance and react or act accordingly.   Risk assessment is generally a managerial function, but can be included in a daily analysis by employees, if the work environment includes risk. The first two...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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