Internal Control Procedures For Petsmart Jayla West University of Phoenix August 31, 2014 I chose Petsmart as my topic for my paper. Mainly because I have pets and that is where I purchase all my necessities for the animals that I truly treat like my kids. I thought it would be interesting to see what the internal procedures for this company are. Petsmart has an audit committee which is selected by the Board of Directors, and is comprised of at least three board members
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Evaluating Internal Controls Internal controls are rules and regulations that companies follow to avoid fraud within its company. Evaluating an internal control system in phases helps to understand the process better. The evaluation occurs within 3 phases. Each phase is designed to test the internal controls to ensure performance is working will. By the last phase auditors give recommendations to companies on how to improve on internal controls. Phase 1 When auditors are “investigating” a
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EVALUATION OF INTERNAL CONTROLS EVALUATION OF INTERNAL CONTROLS E LJB COMPANY 1100 Main St Kansas City, Missouri 64105 United States (816)943-7310 (816)943-7300 2/6/2013 LJB COMPANY 1100 Main St Kansas City, Missouri 64105 United States (816)943-7310 (816)943-7300 2/6/2013 Internal control is measures adopted within an organization to safeguard its assets, enhance the reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations
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Justification for Internal Control Paper Sharmain Carthan ACC/544 September 1, 2014 Professor Fred Johnson Justification for Internal Control Paper A system of internal controls ensures preparation reliable financial statements, compliance with financial regulations, reduce risks, and identify and achieve short and long-term goals. Management uses internal controls to adapt to economic changes (AICPA, 2011, p. 2). Although there are controls in place with insurance and portfolio approaches
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as the Section 404 requirements relating to internal controls over financial reporting. (http://www.inc.com/guides/preparing-for-initial-public-offering.html) The things LJB should continue to practice are: The use of pre-numbered checks and pre-numbered invoices makes it easier to spot a missing document. (Documentation procedures) Locking up unused checks will make it more difficult for someone to gain assess and forge a check.(Physical Controls) Having the President and and another manager
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would like to address what internal control regulations this company will need to follow in its plan to go public including standards set forth under the SOX Act, what areas the company has successful internal controls in place, and what departmental processes need more efficient internal controls put in place. By doing so, I think you as president can make LJB a more secure company and avoid many of the risks it is taking leading to fraudulent activity. Internal Control Requirements: My first area
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Internal controls are a company’s effort to protect its assets from unauthorized use, robbery, embezzlement, and employee theft (Weygandt, Kimmel, & Kieso, 2008). Internal controls improve the reliability and accuracy of the accounting records by reducing mistakes and irregularities whether done purposefully or unintentionally. The principles of internal control are establishing responsibility, using physical, mechanical, and electronic controls, segregation of duties, and independent internal
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Subject: Immediate Internal Controls Evaluation Date: October 13, 2014 Beemer’s internal control system may be outdated and in need of evaluation, and perhaps redesign. As we are all one team, it is important that every one of us is informed of Beemer’s most current internal control policies. With that said, I am expecting that you will pass this information on to your respective departments. This memo will answer the following questions: 1. What are internal controls? 2. How will this
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Internal control plays a very important role in preventing and detecting fraud, also helps to protect the company’s resources and helps to achieve specific goals or objectives. The company, using internal control in compliance with Sarbanes-Oxley Act and regulations, looks more trustful and stable for investors. Internal control has five elements the company should consider before going public and everyone in the company has responsibility for internal control to some extend. The top managers of
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Types of Internal Controls: Detective controls are designed to detect errors or irregularities that may have occurred. Corrective controls are designed to correct errors or irregularities that have been detected. Preventive controls are designed to keep errors or irregularities from occurring in the first place. Types of Control Activities: Approvals Authorizations Verifications Reconciliations Review of operating performance Security of assets Segregation of duties Why are monthly reconciliations
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