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There are a number of things that can point to a poor internal control over financial accounting. If a business has poor internal control over accounting, there is a great opportunity for its employees to commit fraud.
A poor internal control system would exist if there is no proper segregation of duties - if the same person who had custody of an asset was the same person who recorded it in the financial accounting records or could authorize its disposition. It would give the person who had custody of the asset a chance to steal it and cover up the theft by making false entries in the accounting records. Or it would make it possible for an employee who had the authority to authorize and sign company checks the ability to "authorize"and sign a check written to himself. If that person also recorded checks in the company system and reconciled the bank statements (or he was in collusion with another employee who was part of the fraud), he could cover up his act for a long time. A payroll manager who had the ability both to generate *and* distribute paychecks would be able to issue extra paychecks, or paychecks to nonexistent employees (which would be cashed by the payroll manager) without being caught.
A good internal control system begins at the top management level. Employees should receive a documented code of ethical conduct and understand it. There should be a culture of honesty that everyone follows, including top management. Duties should be properly segregated to prevent any opportunity for theft of company assets (including cash), and people should understand what they need someone else's approval for. Accounts should be regularly reconciled by a third party who is not part of the check-writing or collections-receiving, or recording process. There should be an internal audit function monitoring to see that the controls work as designed and that they are being followed. There should be an established mechanism for employees to report any fraud they see occurring in the workplace.
And even a well-designed internal control system is no good if no one is following the required procedures. So compliance should be monitored regularly.
What else can I help you with?
What is considered a bad credit score rating?
A credit score rating is not hereditary. If your parents have bad scores, it doesn't affect you, unless they are deadbeats and applied for a loan under your social. You build your own credit score, which under 650 is generally considered poor.
Who pay most taxes rich or poor?
I'm afraid that you may not get the answer that you want with this question. The top 5% of earners in the United States pay over 95% of the taxes. The U.S. has a progressive tax rate system meaning that the more income you earn the higher your tax rate on your earnings will be and therefore, the more taxes you will pay. It all depends on what you call poor people but basically poor people pay no taxes in the United States as far as income tax goes. Our system is set up to redistribute wealth which means we tax higher earners and distribute the money to the lower income earners in the form of money and services.
What causes your equalim to be off balance?
An imbalance in equilibrium can be caused by various factors, including inner ear issues that affect the vestibular system, sensory input discrepancies from vision and proprioception, or neurological conditions that disrupt balance control. Additionally, physical factors such as muscle weakness, joint problems, or medications can also contribute to balance disorders. Environmental factors, like uneven surfaces or poor lighting, may further exacerbate balance issues.
How does progressive income tax work?
Concept, POOR pay none or very little and the rich pay a bunch. In law, The system is that the Poor pay very little and as your personal income increases your tax bill increases in step. At a certain point the increases stop and you are billed at the maximum rate. In Ontario Canada the maximum rate is targeted to be 50% How it actually works is the Middle Class, 70% of the population pay 50% and the very rich and very poor pay much less.
What are the causes of stock deterioration?
poor management in the store, poor records taken when receiving goods
What is the probable cause of poor hydraulic system response inadequate lubrication and an increase in internal leakage?
low hydraulic oil viscosity
Ways a filling station owner can be cheated assuming there is no internal control?
Misappropriation of assets. Bogus expenses and ghost employees are other ways employees can steal. Poor employee attendance verification also.
Why does Chile have such a large internal disparity between the wealthy and the poor?
Yes they do
Why was tobacco considered a poor man's?
Tobacco was considered a poor man's crop because it could be produced easily and quickly.
Why was tobacco considered a poor man's crop?
Tobacco was considered a poor man's crop because it could be produced easily and quickly.
Is Congo poor?
Yes, the Congo is poor. It has been regularly robbed by the people in control
What is poor credit control?
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What type of economic system does Rwanda have?
Rwanda has a poor economic system. Much of it is agricultural.
What are internal risks?
Internal risks are potential threats or vulnerabilities that originate within an organization, impacting its operations, resources, or objectives. These can include factors such as employee misconduct, inadequate processes, system failures, or poor management practices. Internal risks can lead to financial losses, reputational damage, and decreased efficiency if not properly managed. Organizations must identify and mitigate these risks through effective policies, training, and internal controls.
Why was Fannin considered a poor leader?
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Is India considered rich or poor?
Though India is developing it is still a LEDC (Less economically developed Country) and is considered a comparatively poor country.
True or false did Gottfredson and Hirschi trace the root cause of poor self-control to impulsive behavior disorder?
False, they thought that poor self control stemmed from poor early childhood socialization, which has a lot to do with parenting
