I need a memo written. Instructions and sample memo is attached

CB&R October 19, 2013 1 4. Write a Memo to File in response to the Scenario Update. Your memo will organize the pertinent facts and issues you've found in your research. Cite the sources using In-text citations (see Hacker text pp. 448-463) and provide a Reference List at the end of the memo. Note: Do NOT use the template in Microsoft Office/Word. It is incorrect. The Hacker book will give you a sample APA reference list and explanations about how to cite various sources. In addition, you can use the links provided in Week Five for APA assistance, click here, or the Purdue OWL, click here.. The following are the specific instructions for completing this assignment. Write up your findings in a Memo to File. Read these instructions carefully for details on the purpose of and preparation of the Memo to file. Also, read Rick's Words of Wisdom for additional insight into the real life importance of file memos and their impact on those who may need to use them. Although the memo to file is mainly for your reference, others may need to read it and rely upon it. You want to make sure you use and cite sources accurately. In addition, don't just summarize and cite the research. Be analytical about what you have found. This assignment will allow us to see a written expression of your analysis based on research and to ensure that your writing is progressing according to the previous feedback you've received. Review the information on writing memos in Ch. 10 of the May text and the memo format presented in Week Four, "Summaries Memo." The memo should have an introductory paragraph, should have headings for the main sections, and should end with a brief conclusion that sums up your findings. Organize your report's headings according to the main issues ascertained from your research. Your memo should be 2 (minimum) to 3 (maximum) pages. Be analytically thorough but also concise; judiciously and succinctly focus on the pertinent issues. This memo will serve no practical purpose for you if it contains useless "fluff," filler, or inessential language or topics. Keep in mind our discussion on plain language and clear format. How to organize research: As you conduct your research, keep track of your articles in a working Reference List. Consult your Hacker text, APA section pp. 444-497. We strongly suggest that you annotate your running list with a few sentences that sum up what you find in each article. It will help you when you write your Memo. You will probably not be able to use all the sources you read; sometimes you have to read many articles in order to find the specific information you need. Your final reference list will contain only the articles actually used in your memo. Note: In APA style the Reference List includes ONLY those sources you used in your paper. CB&R October 19, 2013 2 Evaluate each source's credibility, and rely on your resources accordingly. Edit your memo using this checklist for Objectives for Memo to File (we will use it for grading criteria). Research: Conduct thorough research and discern credibility of sources. Cite your sources using APA format. Content: Demonstrate understanding of the issue after reading a number of varied sources. Organization and Format: Organize material in an appropriate and effective format in a neutral, objective tone; do not adopt a prosecutorial tone Writing mechanics: Present complex subjects in a clear (without legal-ese, jargon), logical, grammatical manner; keep your purpose in mind, which is to analyze and not to advocate Improvement through attention to feedback: Demonstrate improvement in issues (e.g., writing mechanics, grammar, word choice, or punctuation; formatting; following assignment instructions) noted on your previous graded assignments. Look over previous comments before editing; we will make such comparisons when grading. Save your file as [your last name.Memo for Peer Review.] Timeliness is particularly essential this week; if you are late, not only are you affecting your own grade (you lose 2 points for every day it's late), but you are inconveniencing your peer editors. Once again, this consequence in the class has its counterpart in the real world; when we are late with information, we almost always cause problems for someone else. Go to the "Users and Groups" on left-side menu. Click on Groups. Find your group and submit your Memo to the "File Exchange" tool. Your other group members will do the same. The draft of the Memo to File is due by Sunday, October 27 at midnight. MEMORANDUM October 19, 2013 To: CB&R, Records Department From: Erika Kolakowski Subject: Research to be used for Weaver Textiles CB&R October 19, 2013 3 This memo is to analyze what should be included in the audit Weaver Textiles internal control framework. The basis of the audit will be the examination of the procedures and recommendations by GAAP; the types of frauds; recent changes in accounting practices; Weaver Textiles inventory practices and court decision. Internal Control In the United States of America, GAAP is followed for financial reporting (Sullivan, 2013). GAAP has several requirements for internal controls that should be in place when observing Weaver Textiles internal control system. This is to ensure the accuracy of the financial statements as well as to lessen the potential for error in their raw material and finished material inventories. By having these internal controls in place the company will, \"reduce losses from theft of company assets and underperforming employees\" (Sullivan, 2013) The first internal control to have is to have segregation of duties. This control is the separation of individuals that perform various jobs that correlate together so one person could conceal a fraud (Sullivan, 2013). By having separation of duties in place it, \"reduces the opportunity for any one person to commit fraud\"(Sullivan, 2013). For example, for Weaver Textile's internal control system, the person who receives the raw materials should not be the person who documents the amount of raw materials and inventory (Sullivan, 2013). By having these duties separated by different individuals there is less likelihood that collusion can occur (Sullivan, 2013). Secondly, an important internal control is access to inventory (Sullivan, 2013). For example, specific areas within the company that are limited access should be secured upon entry of authorized personnel. The security can be accomplished by using a pass key code, or individualized key handprint scan, etc. Even though these security systems are more costly to the company they reduce the possibility of fraud significantly, because it is a more tightly controlled environment (Sullivan, 2013). Next is authorization of company decisions and document signature authority to obligate the business (Sullivan, 2013). Authorization should be a privilege earned and not given, meaning that only honest and diligent employees should be able to have such opportunities to perform these authorizations. These authorizations for these individuals should be documented in writing by executive level company management, along with which tasks they are allowed to authorize (Sullivan, 2013). Another essential internal control is record keeping (Sullivan, 2013). Not only should all transactions be initially documented but they should also be saved to an outside offsite source, such as a backup/mirrored computer, disks, etc. The reasons for this backup so if there is a disaster affecting the company records there is another copy for use in restoring the companies business (Sullivan, 2013). CB&R October 19, 2013 4 Lastly, is verification, which is a random check of all completed documents regularly by the company internal auditor (Sullivan, 2013). The verification audit is to ensure the validity and accuracy of the recorded transactions in order to detect fraud at the earliest opportunity. Additionally, separation of duties is essential for this process because an employee who audits these transactions for accuracy should not be the employee, who initially entered the information or the one who writes the report (Sullivan, 2013). Types of Fraud There are many types of fraud that an individual can commit throughout a company. In the case, of Weaver's Textile's audit the main objective is to discern whether a potential fraud is taking place. There are three types of inventory fraud that have been most costly to companies in the past ("Down for the," 2013). The first type is fake sales, or skimming, in which employees knowingly fail to charge an item at the register or point of sale ("Down for the," 2013). The second type is returned goods in which an employee charges a sale or discounted price and then accepts a return of the same item for the full price ("Down for the," 2013). The third and last fraud is requisition fraud where an employee increases the demand for a product and then keeps the product for their gain and charges the product to a fictitious business ("Down for the," 2013). These fraud techniques are all common schemes and should be considered during the audit of Weaver's Textile's. Changes in Accounting Practices According to IAS 8, \"an entity is permitted to change an accounting policy only if the change is required by a standard or interpretation, or results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or conditions on the entities financial position, financial performance, or cash flows\" ("Ias 8: accounting," 2013). When observing Weaver's Textile's accounting practices, it will be important to ask questions if there have been any changes about the accounting and inventory policies. These questions will be designed to account for most of the possibilities, which could explain why the current inventory is so low, compared to prior years ("Ias 8: accounting," 2013). Requirements and Court Decisions At Weaver's Textile's there should be both monthly and inventory checklists for inventory controls ("Inventory control in," 2013). When inventory arrives at the job site, both a \"receiving and inspection report\" should be written controls ("Inventory control in," 2013). These reports should then be submitted to upper management for observation. CB&R October 19, 2013 5 After management decides accepted reports, these reports should then be submitted into the database of Weaver's Textiles controls ("Inventory control in," 2013). The results of these court cases from Wilmer Cutler puckering hale and Dorr LLP (White, 2013), and Haight Ashbury Free Clinic (Schaeffer, 2009) will be used in preparation of Weaver's Textiles internal control system. These two cases have interesting perspectives on how to prevent fraud and improve internal controls for Weaver's Textiles. Conclusion In the conclusion the audit will be conducted in accordance with the previous section and GAAP. To ensure we conducted audit properly to cover the following areas: 1. 2. 3. 4. Internal control system for inventory management Specifically how inventory is received Losses during inventory processes documented How finished product is accounted for and shipped References Down for the count: detecting inventory fraud. (2013, October 19). Retrieved from http://www.amllp.com/resources/issues-insights/item/585-down-for-the-countdetecting-inventory-fraud Ias 8: accounting policies, changes in accounting estimates and errors. (2013). Retrieved from http://www.iasplus.com/en/standards/ias/ias8 Inventory control in textile mill. (2013). Retrieved from http://textilelearner.blogspot.com/2012/11/inventory-control-in-textile-mill.html Schaeffer, M. (2009, October 08). Internal control breakdown case study. Retrieved from http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/A rticles_2009/CorpFin/IntControls_Breakdown.jsp CB&R October 19, 2013 Sullivan, D. (2013). Gaap principles for internal control procedures. Retrieved from http://smallbusiness.chron.com/gaap-principles-internal-control-procedures63102.html White, T. (2013, June 24). New sec case emphasizes importance of internal controls. Retrieved from http://www.mondaq.com/unitedstates/x/249534/Audit/New SEC Case Emphasizes Importance of Internal Controls 6