Internal Control Assignment
Part 1
You must pick a company that you have worked for and write THREE paragraphs in Word.
In the FIRST paragraph, tell a little about the company you are writing about.
In the SECOND paragraph, you are to write about one control activity that you observed in your business and categorize it using this list from the text and from classroom lecture and discussion about control activities:
• Separation of duties (custody, recordkeeping, authorization, and review/verification)
• Personnel policies (drug testing, screening of new employees, adequate and detailed training, competent supervision, fidelity bonding, mandatory vacations, written job descriptions)
• Physical and electronic access controls for safeguarding assets (physical assets, information, and software)
• Proper authorization
• Adequate documents and records (control numbers, audit trail)
• Separate/independent verification
These control activities are discussed briefly in the text (pp. 328-331, 4b ed.) and were discussed more in detail in class,
Your coverage of the control activity should consist of categorizing it as one of the physical controls listed above, and then providing a thorough description of the control activity in your business, an explanation of what damage or risk to the business is avoided because of the control, and your evaluation of the effectiveness of your businesss specific control.
The THIRD paragraph should focus on a weakness in the control activities of your place of work that found. You should indicate the type
of physical control that is weak or missing, and then describe the weakness, what damage or risk the business is exposed to because of the
weakness, and your recommendation of what the company should do to correct the weakness.
Feel free to keep your companys name secret or change it, if you want it to be confidential.
Please submit your writing via Blackboard to the instructor on the due date