Fi504 Case Study 2 Week 5 Keller

999 Words4 Pages
Dear Sir, Thank you for taking the time to meet with me today and discuss your concerns with internal controls and security. Going public is a big step in the development of a corporation, and you will come under great scrutiny as to your security principles and internal control mechanisms. My colleague has informed me of several examples of how your business operates and I have prepared a few remarks and recommendations for you to address before going public. Before I delve into the heart of the matter, I would like to remind you of the objectives of internal control practices: first, to safeguard the assets of the corporation, improve the reliability of its accounting practices and records, increase the efficiency of the corporation's operations, and ensure that it's following laws and regulations. This can be achieved through the following general principles: 1. Establishment of Responsibility - Setting clear expectations of your employees and making sure 2. Segregation of Duties and Segregation of Record Keeping - Making sure that no single individual remains 'unchecked' by others in his or her activities, and that the same people responsible for certain actions are not also solely responsible for recording those actions. 3. Documentation of Procedures - making sure that the expense reports are accurate and that original receipts are used for proof. 4. Physical Controls - in order to safeguard property against theft and vandalism. Based on those principles, I see several areas of potential improvement. Let's consider the scenarios you have provided: First, it is very important and absolutely crucial that you have faith in long term employees. However, it is not wise to grant too much power to any one single person in your organization, no matter how long they've been with you. As per the first principle, we believe that your Treasury

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