Choose a company (Facebook Inc.) that you are familiar with and provide a simple set of internal controls that would protect and safeguard the company’s asset 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:

   • Name of company.

   • Nature of business.

   • Type of goods and services

   • Fiscal Year

2. There are four categories listed below. Under each category, you will find the different processes based on Financial Accounting information. You need to identify no more than two controls that should be implemented to protect and safeguard the assets of the company.

   1. Entity-Level Controls

      • Governance; control environment; risk assessment; information and communication.

   2. Financial Management Processes

      • Budgeting and Forecasting

      • Investment Planning

   3. Financial Reporting Processes

      • Financial statements and Year-end Reporting

      • Revenue, Receivables and Receipts

      • Purchasing, Payables and Payments

      • Contracts

      • Payroll

      • Capital Assets

   4. Information Technology General Controls

      • Access Management

      • Change Management

      • Computer Operations

3. Based on the template provided, you will need to identify a control objective for each sub-process based on the key control activity; identify the potential risk to the organization for each sub-process and how would you classify the risk - High? Medium? Low? Recommend a possible testing strategy.

4. The submission should be in excel format as per attached template.

Simple Set of Internal Control
Name and location of company:
Name of owner:
Nature of Business:
Type of Products or Services:
Fiscal period:
Processes and Objectives			Design and Implementation Testing		Operating Effectiveness Testing
Process Categories	Sub- Process	Control Objectives	Sample - Key Control Activities - to consider	Potential Risk	Possible Testing Strategy
Questions to be answered		(What is the overall objective of the control activity?)	(What would you do to ensure that the control is functioning as designed?)	(What would happen if this control failed? And how would you categorize it? High, Medium or Low)	(How would you test your control activity?)
1. Entity Level Controls	Governance		Examples may include: Principles and Strategies Policies and Procedures Chief Financial Officer with clear roles and responsibilities Segregation of duties
	Control Environment
	Risk Assessment
	Information and Communication
2. Financial Management Process	Budgeting and Forecasting
	Investment Planning
3. Financial Reporting Processes	Financial Statement
	Year-end Reporting
	Revenue, Receivable and Receipts
	Purchasing, Payable and Payments
	Payroll
	Capital Assets
	Contracts
4. Information Technology General Controls	Access Management
	Change Management
	Computer Operations

Answer rating: 100% (QA)

Simple Set of Internal Control Name and location of company Facebook Inc Name of owner Mark Zuckerberg Nature of Business social networking platform Type of Products or Services Digital streaming ecom... View the full answer