Internal Cont

rolsMemorandum TO: Mr. Tim Tebow (President LJB Company) FROM: Gary Player Spongebob Consulting LLC CC: Board of Directors LJB Company DATE: meet 26, 2012 put in: Review of inseparable Controls Introduction: Mr. Tebow, the story agreement provides businesses with a uniform way in which to routine your data and fiscal instruction. The three main areas at heart the invoice 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 recognise voice in the supremacy of the accounting system.  The internal controls protect your businesses from affront and fraud. IC ensures that the information you are receiving is accurate and timely, and that in both regulatory requirements are existence met.  The following is a outline summary of what IC entails, and how it applies to your business. 1. there are five key elements of internal con trol: * environmental control * Risk estimation * 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 focus will washy upon employee behavior and attitudes throughout the business. If your main objective as forethought is to achieve certain sales levels at all costs, this whitethorn dissua de employees from adhering to the internal c! ontrols in place, and encourage achievement of what management wants, regardless of any consequences.  Risk assessment incorporates a businesses life force 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: OrderCustomPaper.com

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