Internal Cont

rolsMemorandum TO: Mr. Tim Tebow (President LJB Company) FROM: Gary Player Spongebob Consulting LLC CC: Board of Directors LJB Company DATE: expose 26, 2012 put in: Review of inseparable Controls Introduction: Mr. Tebow, the method of history agreement provides businesses with a uniform way in which to character your data and fiscal instruction. The three main areas within the accounting arranging 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 recognise use in the supremacy of the accounting system.  The internal controls protect your businesses from roast and fraud. IC ensures that the information you are receiving is accurate and timely, and that in every(prenominal) regulatory requirements are existence met.  The following is a skeleton summary of what IC entails, and how it applies to your business. 1. there are fi ve key elements of internal control: * environmental control * Risk perspicacity * Control activities * Information and communication * Monitoring.  Each area contributes an crucial part of the control system as a whole, and without every(prenominal) of the key elements present, the control system whitethorn not be effective.

Environmental control examines direction and employee attitudes and behavior.  The objectives of trouble will trip out upon employee behavior and attitudes throughout the business. If your main objective as heed is to achieve certain sales levels at al l costs, this whitethorn dissuade employees ! from adhering to the internal controls in place, and encourage achievement of what management wants, regardless of any consequences.  Risk assessment incorporates a businesses zipper 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-year two...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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