Other key factors are to maintain a record of the inventory that is being sold so the store can better equip products in all three locales and provide for better product placement within all Kudler stores. The design trade-off approach for the project is as follows. A trade-off for the company to increase revenue will be the expenditures for the frequent buyer program, because essentially the company will not see a return profit for an allotted time. The implemented program will allow the company to see a small profit after the first year of the program being implemented. Another trade-off for the company will be the stores performance.
It has two sub goals which are safeguarding from employee thefts and safeguarding from unauthorized use. These goals are in place to help ensure reliability and accuracy in accounting data. The purpose of internal controls is to help a company meet its stated mission as well as to avoid obstacles that stand in the way by giving access to information that allows a company to evaluate their progress and maximize the use of their resources effectively. It allows managers and administrators to respond in a fast manner to changes in the competitive and overall economic climate and modify their operations through the use of standardized, regulated information. ( Weygandt,Kimmel & Kieso, 2008) It is more than quite obvious that in business dealings all parties involved for do not always conduct themselves in an ethical manner.
Section 409 of the SOX Act has been interpreted as meaning that when a material financial change occurs in a publicly held company, it must be reported to regulators within 48 hours (Addison-Hewitt Section 409). Disclosures are to be presented in terms that are easy to understand with the use of graphics where necessary. These easy to follow graphics and disclosure protect investors in real time from delayed reporting of material events. “Companies must also account for changes that occur externally, such as changes by customers or business partners that could materially impact its own financial positioning (e.g. key customer/supplier bankruptcy and default)” (Brief Summary 4).
The cheating management is providing fake accounts and incurring inherent internal audit risks, however, it is the external auditors’ responsibility to remain a critical and suspicious thinking over these accounts and investigate any further misrepresentations in the publicly released financial statement. The audit team should also include more auditors in their discussion of the suspicious accounts and come to an integral and practical measure to dig deeper into the target company’s financial
Protects investors. Sox was created to reduce statement fraud, after the fraud scandal by Enron and WorldCom. It was created to establish higher standards in companies accounting procedures. To make sure that the information provided in the financial statements is accurate. Also to be able to penalize the individuals responsible for the fraud and to provide protection to the individuals that provide information about fraud committed in the companies.
The law on confidentiality and restrictive covenants are in place to ensure that employer’s business interests are protected. Employers may rely on mechanisms such as the confidentiality clauses and restrictive covenants to protect their businesses from damaging competition, disclosure of trade secrets and confidential information. The objective of these provisions is to avoid employees from abusing they employer’s business interests when the employment has come to end. The degree of protection provided to employers differs if the employee has ended the contract of employment. The implied duty of fidelity protects business interests and imposes a obligation employee must not disclose any information or trade secrets of their employers business.
Loss prevention and security is a matter that is very important to the store as for every time tesco loses money due to theft they try to retain their profit by increasing their prices and so to avoid situations such as this occuring the store puts in reinforcements such as security tags, security gates, security cameras etc. Having a security guard(s) at Tesco is a visible deterent to individuals who have the intention of stealing , they also provide proffesional protection of the stores items. Having a security guard in tow means they may control and observe the activites of individuals in store by patroling the store . Security cameras may be used to monitor any suspicious activity it may also prevent/ deter individuals from commiting crimes as they would be recorded, this is a permanent recording is used as proof once a crime is commited and will most likely unsure an arrest/conviction is made. A security company that works in retail is G4S they work to reduce the loss in stock some retail businesses may experience and provide a safer environment for not only customers but also workers.
It is a review of management and how operating procedures work. How effective and efficient the procedures are for the company. Although operational audits reveal possible problems in the financials statements, a compliance audit and fraud audit will help Whitfields internal
Khristine Jackson Week 2 Homework July 19, 2014 The Sarbanes-Oxley Act of 2002 (SOX) was a direct output of the financial statement fraud that sank industry giants such as Enron and WorldCom. 1) What are the primary goals and tenets of SOX with respect to fraud? The primary goals and tenets of the Sarbanes-Oxley Act of 2002 (SOX) are to concentrate on improving the value of audits in an effort to remove fraud in order to keep the public’s attention as well as for the security of investors. In addition, SOX requests corporate management to be more accountable for both fraud prevention and detection. Similarly, corporate board is also more responsible for the occurrence of fraud with the company; under SOX, those who contribute in
Employment assurance wavered due to the negligence of the organization failing to adhere to policy and procedures which resulted in employees and volunteers practicing deceitful and unethical things. Investor loyalty was severely damaged by inside personnel stealing donated funds and financial misconduct of company records. Customer fulfillment was depleted based on the untimely actions of the American Red Cross along with the consumer fraud, and the organization attempting to deceive the donor’s for their own personal gain. Today’s business world needs leaders who can make ethical decision while making sure the action can have a lasting effect on the organization as a