Essay on Biltrite Module 2

683 Words Dec 3rd, 2011 3 Pages
Module 2
1. Identify strengths and weaknesses using the 20 principles outlined in COSO's 2006 Guidance.
Control Environment
• Integrity and Ethical Values- he company and human resources department developed a code of conduct for Biltrite detailing expected standards of ethical behavior and distributed it to all existing employees. this instills a high ethical value into the environment, and shoes that management is wanting a high ethical and integrity of the company.
• Board of Directors- Regarding the board of directors, it is necessary for additional information to determine whether they exercise oversight and responsibility related to financial reporting and related internal control. It is noted that the board is responsible for
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• Financial Reporting Risks: Additional information is needed in order to identify if the company analyzes risks to the achievement of financial reporting objectives as a basis for determining how the risks should be managed.
• Fraud Risk: there is locks on the machine when it is not being used to sign checks and the key is in the custody of the check signer.

Control Activities
• Integration with Risk Assessment: Biltrite uses the control group then monitors the reprocessing of the misstatements after satisfying themselves that the misstatements were unintentional. Any misstatements that occurring during processing runs are logged into the console and are accessible only by the control group.
• Selection and development of control activities: the processes that are in use are very effective and have been chosen due to the cost and benefit of the control activities.
• Policies and Procedures: Additional information could be useful to determine whether the policies are communicated throughout the company. Biltrite does clearly state they have adequate training programs and have a code of conduct for existing employees.
• Information technology: Biltrite's software has adequate controls regarding computer input and output. Any misstatements are addressed, and other controls such as bank account reconciliation.

Information and Communication

• Financial Reporting

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