Internal Cont

rolsMemorandum TO: Mr. Tim Tebow (President LJB Company) FROM: Gary Player Spongebob Consulting LLC CC: Board of Directors LJB Company DATE: exhibit 26, 2012 put in: Review of inseparable Controls Introduction: Mr. Tebow, the method of news report agreement provides businesses with a uniform way in which to social function your data and fiscal instruction. The three main areas at bottom the accounting clay 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 keystone mathematical function in the supremacy of the accounting system.  The internal controls protect your businesses from smear and fraud. IC ensures that the information you are receiving is accurate and timely, and that in both(prenominal) regulatory requirements are existence met.  The following is a drawing summary of what IC entails, and how it applies to your bus iness. 1. there are five key elements of internal control: * environmental control * Risk mind * Control activities * Information and communication * Monitoring.  Each area contributes an decisive part of the control system as a whole, and without all of the key elements present, the control system whitethorn not be effective.

Environmental control examines direction and employee attitudes and behavior.  The objectives of guidance will trip out upon employee behavior and attitudes throughout the business. If your main objective as care is to achieve certain sales levels at all costs, this may dissuade employees fro! m adhering to the internal controls in place, and encourage achievement of what management wants, regardless of any consequences.  Risk assessment incorporates a businesses vitality 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 freshman two...If you want to get a full essay, order it on our website: BestEssayCheap.com

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