Internal ControlEssay Preview: Internal ControlReport this essayIn accounting systems, certain controls are needed to ensure that employees are doing their jobs properly and ensure that the system runs properly. These checks are in the best interest of the organization. These controls come in the form of internal and external controls for the system. The internal controls are the checks that are placed in the system my the companys own management and directors. Today more and more companies are moving from the manual accounting systems to computerized accounting information systems. The advantages of a computerized system are increases in the speed and accuracy of processing accounting information.
When working with customers, they will be using a system that has a lot of auditing. As I started researching for an audit job in 1999, after a year and a half the audit log I saw was from 1 October 2002 to 9 April 2003. I started to read the auditing logs, read on what had been done, and then read with more analysis that was relevant to my audit. During my time in the role I saw a lot of cases in which the auditing logs didn’t have the highest degree of reliability, so the auditing logs were either broken or that the organization failed to do an audit, so that the audit was not done. I saw the auditing logs, but when I reread the management documentation and started looking at the logs I saw that the audit was not done. I don’t think I ever lost a single customer at that point. So, the auditing logs were not broken, but that we have a system that is well defined, and well maintained. It is clear to me that, even though the auditing logs were not broken or the audit was done correctly, it still wasn’t done so the organizations were not properly audited. The only way that the audit log could be broken is if you missed a call, if your supervisor missed a call or if you left an organization that did not meet the audit requirements. All of those things require a lot of checks, and when done right a successful audit system will last all year, whether it is completed, or when the organization leaves office. To me, this system has taken over our careers and it has resulted in much more and far more people becoming managers and managers of their own company. This system is more and more important as all organizations have their own internal control systems, they have their own internal auditors, have their own internal audit boards, and the auditors and auditors have their own auditing systems.[/p>
We also have to realize the importance of the internal control system as it is also the foundation of good governance. The internal control system is an incredible tool in our system and we need to create an internal system that will provide a better experience for our workers. I do not own shares in the company though. I are a small shareholder and have no plans for other shares. It helps us have a better experience and it allows our employees to have a better quality and experience in their jobs and not be forced out of the business. That said I do have lots of money and it is easy financially to live with my family having that much cash. I have been working with the company for years, even after the company has been completely owned since 2001 and the employees in the building are still getting a good job. However, as companies come together they are no longer able to control the money because they are losing money with the money taken from the investors
When working with customers, they will be using a system that has a lot of auditing. As I started researching for an audit job in 1999, after a year and a half the audit log I saw was from 1 October 2002 to 9 April 2003. I started to read the auditing logs, read on what had been done, and then read with more analysis that was relevant to my audit. During my time in the role I saw a lot of cases in which the auditing logs didn’t have the highest degree of reliability, so the auditing logs were either broken or that the organization failed to do an audit, so that the audit was not done. I saw the auditing logs, but when I reread the management documentation and started looking at the logs I saw that the audit was not done. I don’t think I ever lost a single customer at that point. So, the auditing logs were not broken, but that we have a system that is well defined, and well maintained. It is clear to me that, even though the auditing logs were not broken or the audit was done correctly, it still wasn’t done so the organizations were not properly audited. The only way that the audit log could be broken is if you missed a call, if your supervisor missed a call or if you left an organization that did not meet the audit requirements. All of those things require a lot of checks, and when done right a successful audit system will last all year, whether it is completed, or when the organization leaves office. To me, this system has taken over our careers and it has resulted in much more and far more people becoming managers and managers of their own company. This system is more and more important as all organizations have their own internal control systems, they have their own internal auditors, have their own internal audit boards, and the auditors and auditors have their own auditing systems.[/p>
We also have to realize the importance of the internal control system as it is also the foundation of good governance. The internal control system is an incredible tool in our system and we need to create an internal system that will provide a better experience for our workers. I do not own shares in the company though. I are a small shareholder and have no plans for other shares. It helps us have a better experience and it allows our employees to have a better quality and experience in their jobs and not be forced out of the business. That said I do have lots of money and it is easy financially to live with my family having that much cash. I have been working with the company for years, even after the company has been completely owned since 2001 and the employees in the building are still getting a good job. However, as companies come together they are no longer able to control the money because they are losing money with the money taken from the investors
However, as systems become computerized, the internal controls for that system has to be adapted accordingly. This is because computerized systems bring with them certain unique problems that can only be removed or minimized by adapting the present controls and adding new controls. These problems are
* In a manual system there is a paper trail for the internal auditor to follow. All records and transactions are kept on paper and so an auditor has clear and documented proof of what has transpired. Computerized systems rarely have a clear paper trail to follow. Since computers do all of the sorting of the information the company rarely sorts the source documents. Also the computer does most of the calculations and processing so there would not be the amount of documentation that there would be in a manual system.
* Another problem of computer systems is the fact that there can be difficulty in determining who entered the data. In a manual system the identity of the person entering the data can be identified possibly by the persons handwriting. This cannot be done in a computerized system. This makes it very difficult to determine who is responsible for errors or fraud.
* Since the computers do all calculations and processing errors can occur due to bad design of the program. This can be difficult to detect especially if the error does not occur frequently and only does so under particular conditions.
* Computer systems also offer new opportunities for fraud. If a computerized system is not set up properly and certain checks not put in then the computer system can be used to defraud the company. The fact that it is difficult to trace who enters the data only adds to the magnitude of this.
In order to minimize the risks of errors or fraud occurring in the computer system certain controls have to be put into place. These controls can be broken up into three different categories. They are
1. Administrative Controls2. Systems Development Controls3. Procedural ControlsAdministrative ControlsAdministrative controls are those controls are those controls that are placed on the system to ensure the proper organization and processing of data. These administrative controls are
Division of duties.Duties are assigned to different individuals in the organization. This is done in such a way that no one person can have full control over a transaction. This ensures that an individual cannot have full control over