Internal Controls Discussion
To see internal controls in action, look around you. When you go to the store, see what types of internal controls you can identify. At your place of work see if you can identify internal controls that might be in place. After checking out some different places, come up with two internal controls you have observed. It can be at your place of business or when you are a customer (and they don’t have to be from the same place). Describe each of the internal controls and identify which assets these internal controls are safeguarding. Second, find an example of a poor internal control or an example of a situation where an internal control should be implemented. Describe the situation and tell how you would either improve the internal control or implement an internal control if one is lacking.
Answer preview
Internal controls are the policies put into place by the management in an organization or a business to take care of assets. This promotes accountability and efficiency. According to Simons (2008), in a business set up there are many internal controls that needed to take care of business asset. One is preventive control which prevent the loss of assets like the liquid asset in the business. This is because cash is easily stolen by the employees. Risk control is a control to help safeguard loss of physical assets…
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