Kudler’s Internal Controls and Risk Evaluation
Kudler’s Internal Controls and Risk Evaluation When first evaluating Kudler’s, one will think they have everything need to have successful internal controls and risk evaluation. Unfortunately as you evaluate their information, they lack many internal control and risk evaluations need to properly run a system. Many of the controls need to have simple corrections like balance of cash drawers and bank deposit. To writing and enforcing policy and procedure to the finance and accounting security to using the embed security features of the REMS system. What is internal control? Internal control “describes the policies, plans, and procedures implemented by a firm to protect its assets” (Bagranoff, 2008). Current Internal Control Internal Control to Mitigate Risk We have learned the basic internal control procedure. Our company believes the current procedures are very basic and need to address other issues for the company. These items will build and over all currently to run a check and balance system for the accounting system to work. First, there needs to be more detail in separation of duties. Separation of duties is “structures work assignment so that one employee’s work activities serve as a check on those of another employee” (Bagranoff, 2008).Within the bank reconciliation procedure, once the manager has made a deposit to the bank they should add all the checks and cash to balance out their daily activity. This report should be sending with the cash courier and reviewed an accounting clerk daily. This will help with catching errors immediately whether then waiting on the bank. Second this statement needs to be address, “One employee has responsibility for the daily and monthly bank reconciliations. Additional duties performed by the employee include backup functions for accounts payable and payroll when the employee is not available to perform their responsibilities” (Kudler’s Intranet). This one employee should be an assistant manager and they should