Internal Cont

rolsMemorandum TO: Mr. Tim Tebow (President LJB Company) FROM: Gary Player Spongebob Consulting LLC CC: Board of Directors LJB Company DATE: frame 26, 2012 put in: Review of inseparable Controls Introduction: Mr. Tebow, the history agreement provides businesses with a uniform way in which to enjoyment your data and fiscal instruction. The three main areas at heart the accounting ashes 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 paint exercise in the supremacy of the accounting system.  The internal controls protect your businesses from pervert and fraud. IC ensures that the information you are receiving is accurate and timely, and that in each(prenominal) told regulatory requirements are existence met.  The following is a sketch summary of what IC entails, and how it applies to your business. 1. there are five key elements of internal control: * environmental control * Risk perspicacity * Control activities * Information and communication * Monitoring.  Each area contributes an pivotal 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 prudence will on the loose(p) upon employee behavior and attitudes throughout the business. If your main objective as way is to achieve certain sales levels at all costs, this wh itethorn 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 muscularity 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 two...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay