04 Nov Designing effective internal controls is the responsibility of manageme
Designing effective internal controls is the responsibility of management in almost every company. In some cases, there are deficiencies in the internal control environment of a company. Consider how discrepancies between the design and the implementation of internal controls may occur within any given company.
Compare the designs of your choice of two internal controls. Determine which is the preferred design for the implementation of internal controls and why it is more likely to detect accounting irregularities. Provide at least two reasons why the preferred design for internal controls is more effective than the other design. Provide a rational for your choice.
here are three levels of deficiencies that the auditor will report in regard to the assessment of an organization’s internal controls. These three types include:
A deficiency in internal control over financial reporting exist when the design or operation of aa control does not allow management or employees, in the course of performing their assigned functions to prevent or detect misstatements on a timely basis. Control deficiencies are less severe than significant deficiencies.
A significant deficiency is a deficiency or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.