Research Report: Internal Controls

This assignment relates to the following Course Learning Requirement

• CLR 6: 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 Research Project on top of course content and additional research.

Guidelines

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 companys asset from theft or fraud; ensure continued reliability of the companys 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