Society as a whole is responsible to conduct business ethically. Parallel to the formula that we use for inventing the laws that a society created to promote specific behaviors and actions that are appropriate to build trust and relationship, it is similar in corporations' behavior. According to Svensson & Woods "Society does have expectations of business and of its business leaders" (Svensson & Woods, 2008, p. 306). Ethical business behavior is a combination of values and normative ethics, which drive an organization. When analyzing Anglo-American and Primark for this case study.
Internal control requirements When the company decides to go public the requirements listed below will prove to be very helpful. It is the responsibility of top management to make it clear that the organization values integrity and that unethical activity will not be tolerated. This component is often referred to as the “tone at the top.” Control is most effective when only one person is responsible for a given task. There are many accounting regulations required by a public company. All accounting reports must follow the
STRATEGIES FOR EMPLOYEE THEFT PREVENTION AND DETECTION To reduce employee theft, it is essential that appropriate preventive and detective techniques are in place. According to Managing Business Risk: A Practical Guide, a report sponsored by The Institute of Internal Auditors, The American Insitute of Certified Public Accountants, and Association of Certified Fraud Examiners, prevention emphasizes policies, procedures, training, culture setting, and communication to prevent theft from occurring, while detection involves activies taken to identify theft that is occurring or has occurred (IIA, AICPA, & ACFA, 2008, p.30). Organizations that want to prevent employee fraud must plan carefully and continually monitor the effectiveness of their anti-fraud controls. To fully achieve a corporate culture that emphasizes and reinforces employee honesty, companies should develop theft prevention strategies that could be “effectively implemented while minimizing the impact of [potential] problems” (Steven 2006) . Employee Theft Prevention Employee theft prevention is a proactive approach to deter theft perpetrators.
To begin with this report we will first provide the description of the term Internal Controls, what it consists of, its components and procedures. Next we will provide you with important information about the new regulations and provisions required by the Sarbanes–Oxley Act of 2002 (SOX), which will be needed to be implemented for the company to go public. Our consideration of LBJ’s internal controls was designed to identify all qualities and deficiencies in internal controls that might be significant to the business operations. During our analysis we did identify some deficiencies in the current internal controls that we consider to be weaknesses that are important to be addressed. Purpose of this Report The purpose of this report is to describe the scope of our evaluation of LBJ’s internal controls and compliance and the results of that evaluation.
McBride will need to ensure that changes are made, compliance is researched and built-in the strategic plan, and the shareholders will be satisfied with the new MFSI. Situation Analysis Issue and Opportunity Identification The first issue facing MFSI is the need to implement a strategic plan to ensure that the company is complying with all the corporate governance bylaws. MFSI has the opportunity to turn the company around and make sure that they are applying all regulations with honesty and integrity, thus letting their customers trust the way they conduct business. MFSI also faces the issue of a lack of ethical compliance. MFSI has the opportunity to attract more companies
An efficient, effective, and successful accountant must be prepared to adhere to a steadfast code of ethics. At some point in their career, most accountants will encounter challenges that will test their resolve. There will inevitably be pressure from clients and others to manipulate financial statements or to reveal confidential information they feel may give them an economic advantage. Therefore it is important that accountants learn to practice with impeccable ethics and maintain a level of professionalism that is beyond reproach. According to the American Institute of Certified Public Accountants Code of Professional
- Compliance Department (1,2) Why: A bank should ensure a strong compliance culture throughout its organization, where the board of directors and senior management set the right tone. The board of directors and senior management (including Head of the business and Supervisors) should set a clear risk appetite and ensure a compliance culture where financial crime is not acceptable. The Third Line of Defense helps the Bank to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes. How & Who: Develop policies for periodic internal audits (5) covering: Adequacy of bank’s policies, procedures and controls identifying key risks, addressing the identified risks and complying with laws, regulations and
For instance guidebooks or electronic records of resources and liabilities, income and expenses, profit and losses, Bank statements and any further relation of transactions associated with the business. Important records such as tickets, invoice, acknowledgments and other related documents issued or received from customers/suppliers schedules and accounting records should always be maintained and correct. Good records will allow you to supervise how your business is working from day to day, and take any action required to correct problems that become obvious. Moreover Records can protect workers and the agency particularly from later claims of negligence. If good records are not kept this will result in major problems for the business.
It is important to do a thorough review of all performance activities up to the current date. A manager should also take a thorough look at the competition in the capital market. The manager should always know their competitor's business and financing advantages. Using this information, a company can then decide how to gain a momentous advantage
I know how to recognize fallacies and can judge the validity and credibility of the source. The activities also help me realize my strengths and weaknesses when it comes to communicating. Communication is the key to any successful business. I now know how vital it is to have a clear understanding when communicating. When sending messages, I have to make sure it is able be decoded and seek feedback to ensure we are on the same level.