Internal Control Ensures Integrity and Safeguards the Company
– … Corrective control Corrective control is used to correct errors found in other control systems such as detective control, the aim of this control is to focus on the problem until it is fully figured out and taken care of. An example of this control is to train new employees with new processes so they do not make the same mistakes made previously, by doing this we can ensure that the possibility of the same problem happening again is minimal and if it does happen the employees know how to deal with it instead of being confused and make the situation worse by doing the wrong thing….
The Purpose of Internal Controls in the Accounting Process
– Internal control is the specific procedures used within a company to safeguard its assets from employee theft, robbery, and unauthorized use and enhanc the accuracy and reliability of its accounting records by making fewer mistakes (Weygandt, Kimmel, and Kieso, 2008). There are six principles that are used throughout the industry as standards for such control. They are: 1. Establishment of responsibility 2. Segregation of duties 3. Documentation procedures 4. Physical, mechanical, and electronic controls 5. Independent, internal verification 6. Other controls The first of these controls, establishment of responsibility, is the assignment of responsibility to certain employees….
Auditor’s Role in Prevention and Detection of Payroll Fraud
– “It is always right to detect a fraud and to perceive a folly; but it is very often wrong to expose either. A man of business should always have his eyes open, but must often seem to have them shut.” (Stanhope). People are very weak when the power of money is involved. They believe that money is the answer to everyone’s problem. That is why they are easily attracted to commit fraud. This bad practice is still prevalent in the business world today. Business analysts say that it is already a part of the economic parlance…. ;
Corporation Internal Auditors
– … Benefits of outsourcing Internal Auditors First and foremost for many companies is the economic benefit. Outsourcing the IA function can potentially save companies from 20% to as much as 40% in costs. Much of that savings comes from leveraging scale and offshore capabilities. Outsourcing also provides a variable-cost structure, which means companies can align costs of the department with their current business needs. Outsourcing enables you to employ professionals who match your job requirements…. ;
The Similarities and Differences Between a Forensic Accountant, a Fraud Examiner, and an Auditor
– … Forensic accountants need to be well versed in the legal system, because many times they will be asked to do a testimony. Due to their expert status they need to have good communication skills, because if they are called into court they need to be able to explain exactly what they encountered. Robert J. Lindquist, senior managing director for Citigate Global Intelligence & Security says forensic accountants need to “understand exactly what constitutes fraud, which includes practical knowledge of the legal system and concepts such as the elements of the offense, what constitutes proof, intent, and completeness of evidence.” (Wells, The Fraud Examiners)…. ;