Reference no: EM133185417 , Length: word count:1000

Research Report: Internal Controls

Develop a simple system of internal controls.

Design a simple set of internal controls for a company of your choosing. You will have two weeks to complete this researchproject on top of course content and additional research.

Purpose
The purpose of this assignment to choose a company that you are familiar with and provide a simple set of internal controls that would protect and safeguard the company's assets from theft or fraud; ensure continued reliability of the company's accounting system and ensure that management objectives are implemented and executed as designed.

The following must be included in your submission:

1. Brief introduction of the selected company should include:
o Name of company.
o Nature of business.
o Type of goods and services
o Fiscal year

2. There are four categories listed below. Under each category, you will find the different sub-processes based on financial accounting information. You need to identify two controls that should be implemented to protect and safeguard the assets of the company for each sub-process.
o Entity-Level Controls
• Governance; control environment; risk assessment; information and communication.
o Financial Management Processes
• Budgeting and Forecasting
• Investment Planning
o Financial Reporting Processes
• Financial statements and Year-end Reporting
• Revenue,Receivables and Receipts
• Purchasing,Payables and Payments
• Contracts
• Payroll
• CapitalAssets
o Information Technology General Controls
• Access Management
• Change Management
• Computer operations

3. Using the template provided, you will need to identify a control objective for each sub-process based on the key control activity. You will then identify the potential risk to the organization for each sub-process and articulate how would you classify the risk -(High? Medium? Low?)Lastly, you will recommend a possible testing strategy.

Attachment:- Research Report.rar