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Woodson Foundation Building Coalition

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Submitted By tkmld927
Words 2061
Pages 9
Keller Graduate School of Management
DeVry University
Case Study 2

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Table of Contents

I. Introduction

II. Situations and Solutions

a.Williams Oil Services
b. Scott Sales Services
c. Craig’s List

III. Assessment

IV. References

I.
INTRODUCTION

Internal Control is one of the most vital issues that every company has to have inorder to have a better chance of success. Inorder to protect company’s assets and prevent from theft, fraud or unauthorized use of company property, one of the best preventive process is to teach all employees of how Internal Control exist in the company, in the company’s environment, and how employees need to abide to it, and also in its process and overall in the entirety of the company. Statistics indicate that companies with 100 or less employees is prone to fraud or misappropriate use of company’s property; which almost 32% of fraud occurred. While bigger companies with more than 1,000 employees have bigger losses; and have threatened some companies into deep trouble. Enron, a huge company is one example where some of their management team members and employees committed fraud or embezzlement. With the various corporate or business scandals happened in Corporate America, Congress had introduced and passed the Sarbanes-Oxley Act (SOX). Under SOX, all publicly traded companies were required to maintain an adequate system of internal control. Under Section 404 of the SOX, states that all annual financial reports must include an internal control report. It also states that management is responsible for an adequate internal control structure and training to all employees. And registered external auditors must attest to the accuracy of management assertion that internal accounting controls are in place, effective and operational.
In this report, I will be identifying if

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