...Separation of Duties at Riordan Manufacturing James Shoemaker CMGT 430 August 20, 2012 Bradley Andrews Separation of Duties at Riordan Manufacturing Identifying and managing risk is a key to the survival of every organization that has more than one or two people involved in the day-to-day activities. Anytime that an organization allows an opportunity for a single user to perform more than one task or function that requires checks and balances the opportunity for loss to the organization exists. The proper management of risk by the organization will at the very least minimize financial losses to the company and in most cases increase profits. A review of the current processed in place at Riordan Manufacturing’s different locations has led to the recommendation that Riordan Manufacturing needs to establish new policies that provide for Separation of duties within the different departments of the organization. By definition, separation of duties is a key concept of internal controls and is the most difficult and sometimes the most costly one to achieve. This objective is achieved by disseminating the tasks and associated privileges for a specific security process among multiple people (Coleman, 2008). Separation of duty, as it relates to security, has two primary objectives. The first is the prevention of conflict of interest, the appearance of conflict of interest, wrongful acts, fraud, abuse, and errors. The second is the detection of control failures that include...
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...Separation of duties is a principle that prevents any one person (or entity) from being able to independently complete all the functions of a critical, sensitive, financial, or confidential, process or task. This principle is designed to prevent fraud, theft, and errors, as the idea behind it is that if any one person had complete authorization or access to such a process or task, they could manipulate the system and steal information or money. Some people may claim that separation of duties is too bureaucratic because they feel that the concept is more like “red tape” or a principle of “inflexibility” which slows their work, as they need another person to compete tasks at work. Other people may feel it’s too bureaucratic because in their situation the principle of separation of duties makes it so they need a supervisor or manager to complete important tasks at their job such access a critical or confidential database, or issue a cashier’s check. What these people need to understand is the concept of security and that while they may be honest and not ever have the intention of stealing information or money, there are in fact a lot of people who presented the opportunity will do such a thing and that is has happened a lot. They need to understand that separation of duties makes it more difficult for such people to steal information or money, and that separation of duties is not used to control them or slow down their work, but it’s a principle which keeps the integrity of...
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...before a more comprehensive plan can be put into place, it is important that Smith Systems Consulting understands exactly how the security plan will be managed, and how to enforce it on the most basic level. It is therefore the opinion of our company to begin by defining a simple, yet utterly crucial part of Riordan’s base information security policy: separation of duties via the practice and implementation of role assignments. Separation of duties, in information technology, is the practice of dividing both IT staff and end users into managed groups, or roles. While users and IT staff, from an administrative level, may fall into several groups (ex., Accounting Department, Maintenance, Security, etc), these groups are not enough to enforce proper security policy. A more comprehensive approach is to define what the base access is for all of these groups, thus the use of roles. Roles basically define what level of system access each user and user group will have, and what permissions each person will have on their personal computer, as well as servers and databases (for IT staff). Roles help ensure the concept of “Separation of Duties”, when helps to ensure that users and IT staff are only granted the level of system access that is required, and that no administrative...
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...the company’s assets and to promote operational efficiency. Kudler’s AIS uses four systems. They are Accounts Payable (AP), Accounts Receivable (AR), Inventory, and Payroll systems. These four systems have potential risks that may arise due to separation of duties conflict, unauthorized access, and human errors. At Kudler, the AP system is designed as an automated system. The potential risks to the system are the accuracy of the invoices’ approval and the segregation of duties conflict in adding or changing and approving vendors’ details. The sales process at Kudler involves payment by cash and credit. Even though the AR system is designed as an automated system, potential risk occurs when separation of duty conflicts exist in receiving and depositing the cash. The Inventory system at Kudler is also designed as an automated system. The potential risks are unauthorized modification of inventory level, separation of duty conflicts in preparing and approving purchase orders and in ordering and receiving the goods. Kudler’s payroll system is not an automated system. The potential risks to Kudler’s payroll system are accidental human errors, unauthorized access to the check stock, separation of duties conflict in processing and approving payroll payments, and in preparing and approving...
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...faculties the best services and however, they make sure that their needs are met. Complaints was received from the University concerning the poor and ineffective services provided by this department but I find this disgruntling because each mailroom employees put in their effort in doing what was taught to them by their supervisors and doing their job accurately and effectively. I conducted a research using articles from other resources on mail rooms and my major focus will be on the mailroom employees and the importance of complaint avoidance from the University. I also interviewed one of my co-workers about the problems mailroom encounter and what should be done in order to elude them in the future. As a result, I found out that separation of duties among the employees, Effective communication, Effective supervisions, Punctuality and Employee training are the key components of avoiding mistakes, and complaints. The above mentioned are the alternate solutions that should be applied by the employees. Introduction There are several Departments at Park University and one of the departments that I conducted my research on was Park University Mail Services. Park University mail services aim at providing the highest quality and most efficient services to...
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...The Cycle of Deployment causes different stressors during each stage. Separation and relocation are two factors that play a large role in the stress seen in children, often times causing behavioral problems and academic challenges. Physical and mental wounds or illnesses caused from deployment also take a toll on military families, causing stress and causing them to neglect their own needs to care for the ill service member. Many of the factors discussed are overlooked during a casual conversation but are very important in terms of social work and attending to the family while experiencing these...
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...care about their base pay. If a soldier’s base pay is $18,000 a year then is it really less than a civilian who gets $20,000 a year as an individual’s total compensation? Most of soldiers and include myself didn’t understand the concept of “what is the Total Compensation.” After I learned this course, I started understand the total compensation and wanted to find out what actually the soldiers getting for their total compensation. The U.S. Army was established over 200 years and increased its size since then. The U.S. Army was founded on 14 June 1775, when the Continental Congress authorized enlistment of riflemen to serve the United Colonies for one year. Active duty soldiers and activated Army Reserve soldiers earn Army basic pay. Basic pay is the soldiers’ base salary as a soldier on active duty and it counts only as part of your total income. It is distributed on the 1st and 15th of every month, similar to many civilian jobs. The Army’s basic pay is depends on how long the soldier enter the Army as a private. The base pay will increase as the soldier climb in rank and years of experience. Like most of the other organizations, the U.S. Army has the regulation that covers “Military Pay and Allowances.” The Army Regulation 37-104-4 provides the financial administration and basically talks about entitlements, allotments, and pay information. This regulation prescribes policy for unique...
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...determines the rights of the people. In our opinion, we do not wish to abandon the doctrine of separation of power but however, this notion shall follow the Montesquieu approach as he provides for a separation of power that aims at having separate institutions doing separate function by separate personnel and having the checks and balance that will control the powers of these organs. The doctrine of separation of power cannot be abandoned because of the following reasons: The doctrine avoids the abuse of powers. This means that when a single person or a group of people have the extreme amount of power they can become dangerous to the citizens. As it was put forward by John Locke that “it would be a great temptation to human weakness if the same person to make law has the power to extinguish them because they may exempt themselves from obedience to the law or may suit the law in the making and execution to their private advantage”. Thus, the doctrine of separation of power is a method of removing the amount of power in one group's hands and controlling the powers of the organs of the government because it becomes more difficult to abuse the power. Example: Even though the parliament has the power to enact the laws, the judiciary has the power to declare whether the law is constitutional or unconstitutional through check and balance. It insures justice to the people. Through separation of power each organ of the government can be independent...
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...To: The President of LJB Company Subject: Recommendations on Internal Control Policies at LJB Company. Responsibility: The recommendations herewith are designed to give assistance the President of LIB Company to establish the presence of integrity, ethics, competence and a positive control environment. Findings: After an audit of the existing policies of control in LJB Company, these are the finding of some points to improve. The predisposition is to optimize the procedures and the results to offer further effective service to your customers 1-Pursuant to the Sarbanes-Oxley Act of 2002 (the Act) it is mandatory for SEC registrants and their independent auditors to report on internal control in the work place. Sarbanes-Oxley Act of 2002 (SOX) requires all publicly traded U.S. corporations maintain an adequate system of internal controls. SOX imposes more responsibilities on corporate executives and boards of directors to ensure that companies’ internal controls are reliable and effective. Furthermore, Section 404 of the Act directs the SEC to adopt rules requiring annual reports of public companies to include an assessment, as of the end of the fiscal year, of the effectiveness of internal controls and procedures for financial reporting. Section 404 also requires the company's independent auditors to attest to and report on management's assessment. 2-Approved findings of LJB’s documentation procedures. I approve the use of the pre-numbered invoices and, accounting...
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...subject to Federal or State income tax. Entitlement is established from the date of separation if the claim is filed within one year from separation. Generally, military retirement pay is reduced by any VA compensation received. Income from Special Separation Benefits (SSB) and Voluntary Separation Incentives (VSI) affects the amount of VA compensation paid. Disability Pension: This income-based benefit is paid to veterans with honorable war-time service who are permanently and totally disabled due to nonservice-connected disabilities or who are 65 or older. Medical: VA provides a wide range of health care services to veterans including treatment for military sexual trauma, and for conditions possibly related to exposure to Agent Orange, ionizing radiation, and other environmental hazards in the Persian Gulf. Generally, veterans must be enrolled in VA’s Health Care System to receive care. If discharged from active duty on or after January 28, 2003 If discharged from active duty before January 28, 2003, and were not enrolled as of January 28, 2008 TIME LIMIT WHERE TO APPLY None Any VA office or call 1-800-827-1000 or file at www.va.gov None None Combat Veterans: VA provides free health care for veterans who served in a theater of combat operations after November 11, 1998, for any illness possibly related to their service in that theater. Five years from date of discharge from active duty Until January 27, 2011 Any VA medical facility or call 1-877-222-8387 or...
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...1. Which of the following is NOT a resource that operations security identifies the controls for? A. Software B. Hardware C. Media D. All of the above are resources. Answer: D Reference: Introduction Difficulty: moderate 2. A control that makes certain no one person has excessive privileges is: A. Separation of duties B. Principle of least privilege C. Need-to-know D. Individual privilege Answer: A Reference: Operations Security Principles Difficulty: moderate 3. A minimum set of access rights needed to perform a specific job description is: A. Separation of duties B. Need-to-know C. Privileged-controls D. Separation-of-privilege Answer: B Reference: Operations Security Principles Difficulty: moderate 4. Which of the following is NOT a key element of a system of internal and security controls? A. Employ competent people B. Have adequate separation of job duties C. Execute internal and external transactions D. Maintain adequate documents and records Answer: C Reference: Operations Security Principles Difficulty: moderate 5. Which of the following is a fundamental reason why separation of duties is important? A. People are an integral part of operations process B. People have shortcomings C. Both A and B D. None of the above Answer: C Reference: Operations Security Principles Difficulty: moderate 6. People engage in fraud, theft, or malicious activities for all of the following reasons except: A. Some financial crises motivates them B. They can justify their actions C...
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...According to Hall (2015), “Separation of powers is the division of the federal government (and state governments) into legislative (lawmaking), judicial (law interpreting), and executive (law carrying out) branches. (p. 8) Each branch has its own set of duties to perform and carry out. In addition, each branch has an assigned group of people who are delegated these duties. The executive branch consists of the president, the president’s staff, and other administrative agencies ran by the president. However, in state government, the governors perform executive branch duties. The judicial branch consists of the federal courts, but in state courts in state government. The legislative consists of the United States Congress on a federal level...
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...1) The important of separation of right and duty between shareholder and management. Delima Enterprise Sdn. Bhd. was a large company due to these reasons; the company had been awarded with several engineering projects and its cumulative revenue for 2004 and 2005 were nearly RM 1 million and RM 1.7 million respectively. By referring that reasons, we can say that it was a large company. As a large company, the shareholders are separated from Board of Director and management. However, in this case, there is no separation or segregations of rights and duties between shareholder and management. Segregation of right and duties means assign two or more competent and qualified individuals in a way that provides reasonable assurance comply with the standards. It means, at any time , no one person should be in position of doing the primary functions of authorizing, recording and taking care the custody of assets. Besides, shareholders and director have two completely different roles in company. Shareholders are owner of the company while director manage the company. From what we can see in this case, Encik Zayed is the shareholder of Delima Enterprise Sdn. Bhd., in the same time he act as Managing Director. Meanwhile Puan Hashimah is the shareholder of Delima Enterprise, in the same time she act as Chief Operating Officer. Before the company hire Cik Amy as Finance Executive, Puan Hashimah was responsible for all finance related matters. There is clearly stated that they do not have...
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...QUALITATIVE SERVICE PROGRAM (QSP) Effective April 1, 2012 the Army activated the enlisted Qualitative Service Program (QSP) to identify NCOs for involuntary early separation from active duty. The QSP consists of a series of centralized enlisted selection board processes designed to support the Army Leader Development Strategy (ALDS) and to retain the highest quality NCOs who display the greatest potential for continued service while satisfying mandated force structure requirements. An active duty Noncommissioned Officer (NCO), upon attaining the rank of Staff Sergeant (SSG), serves in a voluntary indefinite status once they reenlist with over 10 years of active federal service (AFS). These NCOs continue to serve on active duty consistent with a retention control point (RCP) for the rank they hold. Depending on their rank, the maximum period of service may extend up to 35 years. Combined with promotion timing, RCPs establish specific leader development gateways used to develop a professional NCO Corps. When faced with rapid structure reductions, especially at the senior NCO grades, the Army cannot achieve balance by natural attrition alone. A force shaping process to accelerate losses becomes necessary in order to preserve viable career paths across all military occupational specialties (MOSs) in an effort to sustain an All Volunteer Army. Because the Army cannot achieve future end strength requirements through natural loss of personnel, the Army developed and implemented...
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...safeguard its assets and resources, deter and detect errors, fraud and theft, ensure accuracy and completeness of its accounting data, produce reliable and timely financial and management information and ensure adherence to its policies and plans.” Internal Controls are important in the strength of any business, because it is the end result of the bottom line….PROFIT! In order to succeed, we will show how each situation has a need for compliance to run orderly, the difference in how the President currently guards his checks and the correct procedure, how easy it is steal and have errors (if there is no separation of duties) and how important it is to be accurate and complete in your data and financial reports. In this project, we will discuss the five (5) objectives of Internal Controls. It will reflect how each situation has need of either (1) proper separation of duties, (2) comparison and other checks, (3) adequate records, (4) proper approvals and (5) physical safeguards protection from thefts. All five may or may not be used; however, the education of all can be explored for the success of other companies. Lastly, we will encompass the use of the actual Internal Control Procedures and how they will work to strengthen the business and make it more efficient....
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