Internal Controls Case Study

1447 WordsDec 15, 20136 Pages
Internal Controls at LBJ Keller Graduate School of Management Table of Contents: Introduction page 03 Areas of Success page 04 Areas of Concern and Recommendations page 05 Possible Challenges page 07 Summary and Conclusion page 08 Introduction Internal controls have becoming increasingly important as the effects of businesses “run amuck” have become more devastating in recent years. That being said, one of the most important issues that a good set of internal controls will address is fraud. Law and regulations have been passed in recent years to reduce the temptation to engage in fraudulent activity and a good set of internal controls will make sure that an organization is falling in line with those statutes that affect their business. Every business would like to minimize potential problems and keep problems that do occur from growing. Internal controls are designed to provide this asset to businesses through best practices that put the organization in a more efficient position. When it comes to results, internal controls should be a major contributor in reducing asset loss an assuring the reliability of financial statements. The benefits provided by a good set of internal controls far outweigh the costs for most organizations. An organization that isn’t plagued with fraud, inefficiency and legal problems is an attractive place to work and an attractive place for investment. Areas of Success Two of the primary components of Internal Controls are establishing a control environment and conducting risk assessments on that system of controls for that environment. By establishing the positions of controller, treasurer a hiring a tax professional, it is clear that a control environment has been established. Although a substantial amount of the controls in place rely on the integrity of LBJ’s employees, the environment that

More about Internal Controls Case Study

Open Document