Internal Control Essay Example for Free

Internal Control Essay The LBJ Company is currently making a decision to go public or not and with that The LBJ Company will also need to become knowledgeable about their internal controls within their systems, specifically in regards to Accounting and also Human Resources and how it will affect them and their employees and of course how they conduct business. There have been some positive and negative issues arise in regards to their internal controls. However, the LBJ Company needs to be acknowledged for what they are doing right, but will also need to address the issues that are negatively affecting them and their business and will continue to negatively affect them if they decide to go public, which will drive down the cost of their shares etc. This case study will review these items as well as make recommendations for what the LBJ Company can do to tighten up their internal controls. Part 1: Internal Controls Requirements Inform the President of any new internal control requirements if the company decides to go public. Internal controls are mechanisms, policies, and procedures used to minimize and monitor operational risks. In order to deter employees from committing a dishonest or fraudulent act the controls must be thorough and comprehensive. However, internal controls by themselves are not enough. They will be effective only if they are reinforced through culture, policies and procedures, information systems, training, and supervision of staff. * The primary objectives of internal controls are to: Internal controls help to provide reliable data by ensuring that information is recorded in a consistent way that will allow for useful financial reports * They also help prevent fraud and loss by safeguarding assets and essential records. * Internal controls promote operational efficiency by reducing unnecessary duplication of effort and guarding against misallocation of resources. * They encourage adherence to management policies and funding source requirements. Internal controls can be broke down into two categories- accounting and administrative controls, which is exactly what the issues are with the LBJ Company. (Internal Controls Checklist) According to the Sarbanes Oxley Act of 2002, all publicly traded U.S. corporations are required to maintain an adequate system of internal control at all times. As LJB Company President, he or she should be aware that a controlled environment must be present at all times, and â€Å"that unethical activity will not be tolerated.† The LBJ Company must identify and analyze the various factors that could create risk for the business and how the team can manage those risks. The overall internal control system needs to show and communicate all appropriate information within the organization, to ensure that the communicated information has reached the organization. According to the textbook, â€Å"It is very important to have testing and auditing of controls to build a long lasting organization. (Kimmel, 2009) Part 2: What the Company is Doing Right? Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When you advise the President, please be sure to reference the applicable internal control principle that applies. The company has been doing well by creating a balanced environment for employees, due to the long-term employees that are currently there is an excellent thing for LBJ Company. From what is being shown, the managers and employees have a great balance, which keeps good control and promotes a team oriented environment within the company. Another good thing is that the accountant is in charge of the checks and also stores them into safe in his office, but the manager should have the only key to the safe to increase the monitoring of the checks and would also create a checks and balance system. Plus if the accountant is not there for whatever reason and an employee needs their check, the manager can handle that and not violate any employment laws by not giving an employee their check in a timely manner. The President of LJB Company, has also done a good thing for wanting the employees to be aware of any new regulations required of the company if they decide to go public. It is incredibly important the President have different individuals serve as an Accountant, Treasurer and Controller which will help streamline many of their processes. This way, the Accountant will not be responsible for all financial dealings and again this will create checks and balances which are required to go public. Part 3: Advise the President of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle that is being violated along with a recommendation for improvement. (20 points) This situation for LBJ Company has shown that it is in clear violation of the internal control principle and is running significant risks by not including more oversight and checks and balances. First of all, that they have one accountant who plays the role of both Treasurer and Controller is an area of great risk. The Controller and Treasurer are meant to play opposite roles in which they provide oversight and checks and balances to the other. The two positions should be filled by separate employees, and this change should be implemented as soon as possible. In the current setup, the one accountant has too much power over the processes. Another issue is the cash drawer principle also leaves the company vulnerable to fraud and manipulation of funds. For example, even if a company employee were to act independently, an employee could easily remove a substantial amount of unauthorized funds, and it would be difficult, if not impossible, to find who did it as any of the company employees could have been culpable. An example of the problems that arise from the anonymity that company employees have within the organization, is clearly exemplified in the case of the worker who was fired for viewing pornography on the company computer. Not only does this introduce risks of damaging corporate reputation, and download viruses, but it also highlights how the lack of individual user accounts and accountability makes it so that one employee can hide their malicious actions with anonymity. Below are some recommendations for the LBJ Company. Recommendat ions: 1) To introduce a culture of corporate responsibility, the CEO should begin to implement individual user accounts for its computers, as well as a formal cash withdrawal system, that requires that company employees register themselves with another person or a computer system. 2) The role of the one accountant who acts as Treasurer and Controller must be separated into two so as not to violate the internal control principle, and in order to minimize the likelihood of fraud. 3) The checks should not just be left at the accountants office, but in a safe where only two people have access such as the accountant and the manager. That way more than one person is responsible. 4) The accountant taking checks home over the weekend is a security issue as well as introduces more opportunity for fraud. This practice must be stopped and more safeguards put in place. This also is an issue regarding personal identifying information on the checks of the employees and if the checks become lost or stolen, then that information is available to the public now. 5) The accountant also being involved in the interview process for new employees is disturbing because of the level of control he has over critical aspects in the companys day to day business. If he were to hire an accomplice, he could easily use that individual and his position in order to manipulate accounts and withdraw significant funds from the company before he is ever caught. 6) The HR Departments should also run more thorough background checks as part of their hiring processes. (Bell, 2010) Conclusion Now that the LBJ Company has received the recommendations to fix the issues with their internal controls, they will no doubt be able to go public and be successful. The LBJ Company should also re-evaluate their processes every so often to make sure that these new systems for their internal controls are successful. They should re-evaluate every so often in case they need to make changes as well.

Health Matters :: Healthy Lifestyle Essay

Health Matters In 1991, fewer than one percent of Americans felt that health care was an important issue. Just two years later, President Clinton urged Congress to help him fix a health care system that "is badly broken" (Collins 78). Is the health care system badly broken? The health care reform debate has captured the attention of all Americans. What brought health care reform into the public spotlight? Although our medical care in this country is of the highest quality, our access to that care is waning due to higher and higher costs. Our health care system needs fundamental reform. Currently, there are dozens of reform packages in Congress, yet three packages offer significant recommendations toward health care reform: President Clinton's Health Security Act, Representative Jim Cooper's Managed Competition Act, and Senator John Chaffee's Health Equity and Reform Access Today Act. The final health care reform package must include the choice aspects of all three of these proposals. One aspect which must be included in health care reform is the elimination of insurance bias. Too many Americans are uninsured because of pre-existing conditions. Insurance providers should no longer be allowed to cover only the healthiest persons. Never again should an employer feel the need to fire a worker because of an illness which raises health insurance premiums. There are two important steps toward eliminating insurance bias. The first step is making portability of insurance a reality. Right now in this country, 28% of working Americans are unable to change jobs because they would lose their coverage and be denied coverage with another company due to pre-existing conditions (U.S. Health 56). For example, Marcia and Mark Callendar both had good jobs with good benefits. They thought their family was well-protected by the insurance provided by Mark's employer. Then their son, Matthew, got sick. Mark lost his job, and the Callendars lost their insurance. When they tried to apply for coverage through Marcia's job, they were turned down because of Matthew's pre-existing condition. Matthew finally qualified for coverage through disability, but Mark had to take a lower-paying job to be eligible for coverage (Health Security 6). Hence, increasing portability of policies is fundamental to reform. No longer should an individual lose health insurance coverage with the loss of employment. Secondly, insurance providers must stop cherry-picking individuals. People should not be denied health care coverage because they have been sick. Denial of insurance coverage only forces these patients to use expensive emergency room services rather than obtaining regular treatment.

Argumentation Essay: Facebook Essay

Argumentation Essay: Facebook When a possible employee is in the process of being hired, his or her employment should be based on a social media network such as, Facebook. The main points for this position consists of professional versus social, freedom of speech versus censorship, and a person’s true identity behind closed doors. Facebook is one of various other social networks that are not confidential. Anyone can view a user’s profile and see all of their updates. People use Facebook from sending invitations to guests to campaigning a company party. Facebook is a major part of advertising now. Another large part of Facebook is posting photos. A user of Facebook can add as many photos to their profile as they want to. Facebook has made an immense impact on modern society. All ages, including some of the elderly have Facebook accounts. Small businesses and growing corporations also take part in having an account. Also, colleges and universities sometimes use Facebook to communicate with their students about upcoming events. Employers use several methods before hiring an eligible employee. An employer is looking for someone that is polished inside and out of the professional world. They have every right to look at employee’s Facebook profile. Nothing inappropriate should be posted on an employee’s Facebook profile. Everyone is aware that Facebook is not a private social media website. Posting a status or photo online can be seen by anyone, even an employer. An employer has every right to look through the person’s information. Facebook can be a downfall for numerous opportunities. Although we all have freedom of speech, it can be taken lightly with consequences. Employees can be fired by some of their actions on Facebook. Another consequence is someone not being hired due to their Facebook profile. If an employer does not like the material, they have every right to deny your employment. Especially in this modern society, employers and businesses are looking for the top quality for their company. Top quality employees differentiate from others. They do not retain inappropriate photos or words on a public social media network site. Employers look for people who will represent their business in a classy manner even outside of the business doors. Reputation is everything to some companies. They want their company reputation as high as it can be. A good reputation starts with good employees. An employer has every right to see how a person is in their social environment. A person’s personality and  personal actions cannot be judged just through the professional world. You can tell a person’s true personal traits in their comfortabl e social environment. Facebook is the perfect gateway to see how a person’s characteristics are different in the professional versus the social environment. Not everyone realizes that somebody is always watching you. Whether it is a family member, a close friend, or an employer looking to see if you are eligible for the position. Every individual should be held accountable for what they post on Facebook. Professional conduct should be shown at all times when something is posted on a public website. Keeping a professional conduct is very important to many employers. Some individuals would make a point that everyone has a right to have freedom of speech. Those who agree, feel that it is okay to put inappropriate material on their Facebook page due to their right to free speech. Freedom of speech is a constitutional right. Many people take the right out of context. Those who disagree, feel that censorship should be analyzed. Yes, every individual has a right to speak freely but, is it right to offend someone while practicing it? The answer is no. An individual could simply say they hate their boss on Facebook. All it takes is for that boss, or another employee to see the post. The employee could encounter disciplinary actions in their workplace or even lose their job. All this could be avoided if censorship was practiced. Also, some would say that an employer looking into an applicantâ €™s Facebook would cross the line between social and professional boundaries. Those who agree would point out that applicants should not be judged on their Facebook page. Looking through an applicant’s page is unprofessional and crosses the line. Those who disagree would make the point that it is a professional choice for the employer to do. The employer knows nothing about the applicant other than what they have stated on their resume. An applicant could lie about his or her age, obligations, or even the county they live in. It is only natural to do a check up on the applicant to make sure they look eligible for the position. Think of Facebook as a back ground check. Mostly every employee has to have a back ground check of them before getting a certain position. Facebook is very similar to a back ground check. It indicates a more interpersonal and social side of the person’s life. If an applicant desires a first-class job, they should always take what they put on Facebook in consideration. Although everyone has the freedom to speak  their mind, they need to practice censorship on a social media network site. Also, being professional on Facebook could increase your chances of getting hired. Anyone, especially a future boss could look at any account and choose to accept or decline an applicant’s position

Revenge in Shakespeares Hamlet Essay - 1539 Words

The Tragedy of Hamlet, Prince of Denmark is one of William Shakespeare’s most renowned works of literature. Published in the very early sixteenth century, the play remains to be the longest of all Shakespearean works and the most popular as well. Perhaps what is so appealing about this masterpiece, the tragic story of the death of King Hamlet, murdered by Hamlet’s uncle Claudius, who later marries Queen Gertrude in order to take the throne, and Prince Hamlet’s journey to exact revenge on Claudius for all he’s done to the kingdom, is the fact that revenge plays a rather large role throughout the play, being what motivates Hamlet to pretend insanity in order to succeed. Revenge is an important theme portrayed constantly throughout Hamlet,†¦show more content†¦Once finished with his story, the Ghost asks Hamlet for one simple favor: â€Å"Revenge his foul and most unnatural murder† (Lawall et al. 1799). The death of King Hamlet is foul as it w as done while he was asleep, and unnatural because someone of his own kin committed it. Hamlet promises to fulfill the ghost’s request, which sets the play’s entire plot into motion. Afterwards, Hamlet advises his friends not to pay attention to his behavior from that point on, as he will put on â€Å"an antic disposition†; he will fake insanity to distract everyone from his actual motives. However, whether or not Hamlet is actually insane or just pretending to be has been a subject of criticism by literary analysts. In his legal and metaphysical study titled â€Å"Is Hamlet Mad?† Newman Watts argues for the former. He presents his evidence in a very legal manner, accusing Hamlet of suffering from mental aberration, as evidenced by â€Å"his morbid temperament†¦ his defective memory and illogical condition of mind, evidenced by his treating the combined secret of his life, and the motive for his revenge, as a confidence reposed† (Watts 7). The main act that Hamlet committed during his â€Å"staged† madness, the murder of Polonius — although his identity was unbeknownst to Hamlet prior to the killing — would not be something any sane individual would commitShow MoreRelatedShakespeares Hamlet: The Tragedy of Revenge1165 Words   |  5 PagesShakespeares Hamlet: The tragedy of revenge The time is out of joint: O cursed spite, / That ever I was born to set it right! (I.5). Shakespeares Hamlet is an unwilling avenger. Despite his hatred of his uncle Claudius and his sense of the injustice perpetuated upon his fathers memory, Hamlet seems unable to obey the will of his fathers ghost. Ultimately, this is not shown to be a sign of weakness or cowardice upon Hamlets part. Rather, the intellectual protagonist understands all too wellRead More Revenge in Shakespeares Hamlet Essay1124 Words   |  5 PagesRevenge in Shakespeares Hamlet Revenge. Revenge causes one to act blindly through anger, rather than through reason. It is based on the principle of an eye for an eye, but this principle is not always an intelligent theory to live by. Young Fortinbras, Laertes, and Hamlet were all looking to avenge the deaths of their fathers. They all acted on emotion, and this led to the downfall of two, and the rise to power of one. Since the Heads of the three major families were each murdered, the eldestRead More Revenge and Vengeance in Shakespeares Hamlet - Why Revenge?1054 Words   |  5 PagesRevenge in Hamlet        Ã‚  Ã‚   In Elizabethan times, a type of play known as a revenge tragedy became popular. These plays revolved around, ... the revenge of a father for a son or vice versa, the revenge being directed by the ghost of the murdered man... (Harmon and Holman #6). Other characteristics include real or pretend insanity, philosophic soliloquies, hesitation on the part of the protagonist, conspiracy, and the use of horror. William Shakespeares Hamlet fully satisfies each of theseRead More Revenge in Shakespeares Hamlet Essay1421 Words   |  6 PagesRevenge in Shakespeares Hamlet In Hamlet, Shakespeare uses revenge as a major theme present throughout the work. Revenge plays a crucial role in the development of Fortinbras, Prince of Norway, Hamlet, Prince of Denmark, and Laertes, son of Polonius. All three men seek revenge for the murder of their fathers. Revenge can be interpreted as a separate character in Hamlet. Revenge is set to overcome anyone who seeks it. Initially, after each of the murders, every son had a definite course of actionRead MoreThe Hypocrisy of Revenge in Shakespeares Hamlet854 Words   |  3 PagesIn todays society, the media often portrays revenge as an acceptable option. This is not outright stated, but rather implied. Characters often seem to think that revenge is the only way to get closure from a bad experience, and when this is acted on, negative consequences are not shown. Rarely is the fact that vengeance is hypocritical and wrong brought up. People need to wake up and realize that revenge is always hypocritical and illogica l. As Christ said, â€Å"Let him who is without sin amongRead More Revenge and Vengeance in Shakespeares Hamlet - Pure Revenge Tragedy?1932 Words   |  8 PagesHamlet – the Revenge Tragedy?  Ã‚        Ã‚  Ã‚   A baffling array of considerations relevant to the revenge aspect of Shakespeare’s tragic drama Hamlet make an essay on this topic an interesting experience.    Ruth Nevo in â€Å"Acts III and IV: Problems of Text and Staging† explains the uncertain place which revenge occupies within the hero’s most famous soliloquy:    And conversely, because self-slaughter is the ostensible subject of the whole disquisition, we cannot read the speech simplyRead MoreHamlet As A Revenge Hero In Shakespeares Hamlet1436 Words   |  6 PagesShakespeare is thought of as the greatest writer and playwright in the English Language. Among his many plays, one of the best is Hamlet, a revenge tragedy of a prince, Hamlet, seeking to avenge his father’s death. In the play, Hamlet exhibits actions that an audience could debate on if they suggest he is insane or sane. One side of the argument could debate that Hamlet has been driven mad due to the grief of his murdered father. However, the opposing side could argue he was putting on an antic dispositionRead MoreThe Theme Of Hate And Revenge In Shakespeares Hamlet1391 Words   |  6 PagesShakespeare’s Hamlet is a tale laced with hate and revenge. Young Hamlet’s father, King Hamlet, is his role model who he bases his actions after. His unexpected death thro ws Hamlet into a dark time of despair which only compounds his grief when his mother Gertrude remarries to his father’s brother, Claudius. Hamlet mopes around the castle at Elsinore feeling sorry for himself. This is why when Hamlet hears his father’s ghost may have appeared he jumps at the opportunity to see him again. He listensRead MoreThe Dangers Of Revenge In William Shakespeares Hamlet900 Words   |  4 PagesThe Dangers of Revenge As represented in many examples throughout literature, revenge is a dangerous desire. Revenge will bring out the worst in people, often causing them to neglect their responsibilities and moral duties. Hamlet, in William Shakespeare’s Hamlet, allows his personal passions to interfere with himself and those that are close to him. As a result of Hamlet’s eagerness to avenge his father, he is led to neglect both Ophelia and his mother, disregarding his morals as a person, and revealingRead More Revenge and Vengeance in Shakespeares Hamlet - Going Beyond Revenge1851 Words   |  8 PagesGoing Beyond Revenge in Hamlet      Ã‚  Ã‚  Ã‚  Ã‚  The simplest and superficially the most appealing way to understand Shakespeare’s Hamlet is to see it as a revenge tragedy. This genre was well established and quite popular in Shakespeare’s time, but it was precisely part of his genius that he could take old forms and renew them by a creative violation of their standards. As this essay will explore, Hamlet stands the conventional revenge tragedy on its head, and uses the tensions created by this reversal