You must pick a company (preferably one you have worked for) and write about its internal controls. You are to cover at least 3 control activities of internal control:
Segregate duties (custodial, recordkeeping, authorization, and verification)
Restrict access (safeguarding of assets and information, security measures)
Establish responsibility (proper authorization)
Document procedure (adequate documents and records, audit trail of source and ancillary documents)
Independently verify
Personnel policies (drug testing, screening of new employees, adequate and detailed training, competent supervision, mandatory vacations, written job descriptions, clear lines of authority and responsibility for each position)
You are to write a 1-2 page, single-spaced, typed paper with double spacing between paragraphs. Please use headings for each topic or type of internal control (e.g. Segregate duties) you write about.
Start with an introductory paragraph to tell a little about the company you are writing about.
Pick at least three control activities used in the company. Your coverage of each should, at minimum, consist of a thorough description of the control activity, an explanation of what damage or risk to the business is avoided because of the control, and your evaluation of the effectiveness of your business’s specific control.
You are to cover at least 1 weakness in internal control. Use a heading for the weakness.