Troberg Case StudyEssay Preview: Troberg Case StudyReport this essayTroberg Case StudyTroberg Stores Case Study1. A business’s internal control process should address its need to comply with relevant state and federal statutes. Internal control is an integral component of an organization. It is managements job to maintain an effective control system that provides reasonable, but not absolute assurance for effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. According to the EPPA act employers are required by law to post notices summarizing the protections of the act in workplace areas. If certain laws and regulations such as the EPPA Act are required to be posted in workplaces areas then management’s internal control process need to comply with applicable laws and regulations. In order to stay compliant with relevant laws and regulations management can consult an advisor.
Troberg Case Study: A Business’s internal control process could be useful as a baseline for assessing what companies need to do to comply. The following article aims to provide an overview of what common tasks and information requirements to comply with:’ In order to stay at the forefront and avoid being overwhelmed with information about what the company needs, you need to know the standard for requirements that you need from employees. If you have a job you want to cover you need to know what standard needs a typical employee is expected to meet. You need to know what standards your employees must be trained to meet to comply with.’ In order to prepare customers for the future you need to know what are the necessary standards on how to comply with employees’ own requirements.
A company can implement a general business process, which is commonly called an exercise. An exercise is:’’’’’’ The “act of compliance” (also commonly used as a phrase to represent a requirement or a rule) is part of the exercise which is to be carried out in order to ensure that employees meet the performance standards established by the employer (if available) in a specified situation.’ A common response to these responses is to call an exercise and notify management with the relevant questions and answers. However, there can be occasions when individuals or groups that have been notified of a problem may act in a way that has potentially serious consequences. In these situations, management usually takes a strong cue from employees, and the employee should be taken to task if they take their time.’’ This is to ensure that employees have been given a clear picture of what is relevant to their internal controls and is in the best interest of the company at hand.
’’’’’
Evaluation.’’’’« A company should assess (also called valuation) a particular business problem. Generally, a company should take into consideration the above mentioned factors and what the firm is looking for in its solution, including the importance of the above mentioned factors to an employee’s performance and the likelihood of getting feedback. Depending on the level of review done by a company, it can be as simple as changing some of a company’s processes.
’’’’’’
Workplace.’’’’’
Workplace, including the building of a firm and the staff involved in it, is important to a company that is looking for new people and changes to its processes are needed to address these issues. This sort of job is carried out by all different company to company processes. As these are not strictly separate issues, the relevant business management issues to consider can be listed in more detail.
An exercise or question comes from a manager or person who is aware of the particular situation. While some employees might say that they will be treated well by the exercise because they are in a good mood and have an understanding of the employee’s decision making, it is important to avoid misinterpretation of their own answers to these questions.’’ If the employee takes action through an exercise rather than just an answer, then they are not going to have that clear message.’’ The employee should be informed of the decision. In order to take the management’s opinion into account he should make clear that the exercise involves a clear understanding of the employee’s decision making and of the general rules of the exercise and how to work with a professional body to take steps to ensure compliance.’’ If the exercise involves a question about the employee’s personal affairs, it should be addressed to determine if the employee is entitled to get to know and understand management’s personal decisions (if available) without any intervention from the manager. Management should not be distracted by questions of competence or safety because some employees will have the same level of competence that the manager is interested in (if necessary if needed).’’ In order to have more efficient management, there should be a level of communication and collaboration among employee members as required by the act of compliance as well as within this process.
Although employers are required bylaws and federal acts, they may not be required to do any of the following:’ Provide a company with the necessary personnel and training.’’’ Provide that employees are to cooperate with management in fulfilling their responsibilities. •‏‏‏ •‏‏ •‏ •‏ •‏ • In order to be effective in making sure employees have the best possible working environment and have the opportunity to make their own decisions, employers must be prepared to offer training and employment opportunities for their employees
Employees must obtain a professional agreement to be paid for their services through payroll tax. Employers must agree to pay the employees, including any portion of their expenses, through payroll tax, at minimum
2. Below are policies and procedures used by stores to maintain control over checkout stand operations and the control object:a) Provide a receipt for every transaction. Encourage customers to expect a receipt by posting signs at each register.i) This ensures that the cashier is not over charging the customers.ii) The cashier is handing them back the exact change due. A cashier might hand the customer less change back and at the end of the day pocket the money that his/her draw is over by.
b) Put one employee in charge of setting up cash drawers. Have another double- check the cash count.i) This control is to make sure the cashier is responsible for his/her draw at the end of the shift. If you give a cashier a draw with $100 and they agree it has the same amount then at the end of their shift they should have $100 plus the cash sales in the draw. Any less is the cashier’s error. If this trend continues one should look into it as a possibility of theft is possible.
c) Each employee is responsible for his/her own cash drawer. No other employee should at any time (during lunch, breaks, etc.) be allowed to open or use anothers cash drawer. At the end of each shift each cash drawer should be balanced by the employee and double- checked by another.
i) This makes sure that the cashier is responsible for his/her draw at the end of the shift. Also helps agreeing to the cash total at the end of the shift when two people are counting it. This eliminates any discrepancies or errors in cash counting. Also makes the individual wholly responsible for his/her draw and liable for any errors or shortage of cash.
d) Cash register drawer is closed after each transaction. Register is locked at all times.i) Closing the drawer after each transaction ensures that the money is placed in the register and reduces the likelihood of an error or theft.ii) Locking the register limits who can access the register. Usually the cashier and a supervisor are the only ones with access to the cashier’s register.
e) Identify each over-ring and under-ring. Managers sign off all voids and over-rings.i) A cashier might hand the customer less change back and at the end of the day pocket the money that his/her draw is over by.f) Limited amount of accumulated cash in the register.i) Use a drop-safe. This reduces the likelihood of losing a lot of cash in case of a robbery. Safe-drops prevent large sums of money being accumulated in the drawers.
g) Check cash-to-sale ratios.i) These, along with unusually frequent refund transactions, can indicate employee theft.h) Check for counterfeit currencyi) The look of the paper and its “feel” are usually the most obvious signs. A common counterfeiting practice is to “cut corners” off or use a checking marker.
3. Duties that typically should be segregated or separated across employees of a small business are the custody of assets, authorization or approval or related transactions, record keeping of related transactions, and execution of the transaction activity. Management should cross-train employees to segregate incompatible duties to prevent fraud.
Four main categories that should be segregated:* Authorization* Custody* Record Keeping* ReconciliationIf adequate segregation of duties is not economically feasible for small businesses than businesses should at least separate custody of assets from the record keeping. This means the person who receives and records receipts should not generate invoices and reconcile receivables. For small businesses, owners should be more involved in business operations.
