Essay on Case Study 2-Ac 505
I was recently informed through a colleague about your upcoming decision of going public with your company. Let me first congratulate you on making such an executive decision. This decision will not only change your company it will also change your life. There is much entailed in going from a private entity to a public one. There are many advantages as well as disadvantages, and you must be well prepared and informed of both in order to deal with these issues. From the information which was conveyed to me, I feel you would prosper greatly by making many important changes and decisions before doing so. I have conferred with a business partner in order to make crucial, necessary and appropriate internal control requirements …show more content…
3. Internal controls are implemented to reduce criminal activities and fraud. The components of internal control and fraud are 1. Control environment, 2. Risk assessment, 3. Control activities, 4. Information and communication, 5. Monitoring.
4. Be aware of all of the government agencies and governmental rules and laws mandated within internal control. These government affiliations can and will demand you financial records at any time. Your accounting department must be up-to-date and prepared with any and all of its financial and accounting information.
I understand that you have relied greatly on long-term faithful employees, which is a very flattering and effective asset to the company. You already have a jump start on reliability and security within departments of internal control. You have one person doing the finances of the company which will help reduce internal fraud. You have used on the main principles of control under fraud activities, “Control is most effective when there is only one person responsible for a given task”. But, I would think that these duel positions are a bit much for one person to handle. Why not delegate another faithful employee to help in these