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Internal Control And Risk Evaluation Essay

845 words - 4 pages

Internal Control and Risk Evaluation
Lauren A Lewis
Accounting Information Systems ACC/542
June 23,2014
Yasin Dadabhoy

Internal Control and Risk Evaluation
Internal controls and risk assessments are an essential part for an organization to be successful. Management at Kudler Fine Foods has reviewed the flowcharts prepared and is requesting information on controls that will be required. Risks are the negative events that may occur causing a change in an organizations productivity. Internal controls are the policies and procedures put in place to reduce unexpected occurrences related with the risks. This brief will discuss the risks of Kudler Fine Food’s current Accounting ...view middle of the document...

Each process must be completed a certain way without going around the controls put into place. The payroll system starts with the fingerprint time card of each employee. Payroll will consist of two controls; first will be the assurance by ethical hackers of any and all flaws in the finger printing time card system. The second control will be placed in the system that approves the time cards. Kudler must perform monthly audits on this system to remove any glitches that may arise. Kudler must keep in mind that these automated systems will need to be audited and updated constantly.

HR compliance/Code of Conduct

In order for the organization to be compliant with audit controls and policies and procedures, Kudler employees must be compliant and understand the importance of the code of conduct. Management must present this information with high importance and seriousness to each employee. If the employees do not see management taking this information serious there will be a breakdown in the organizations controls. A code of conduct (Wikipedia, 2014) is a set of rules outlining the responsibilities of, or proper practices for, an individual, party or organization. With the responsibilities clearly outlined for employees Kudler reduces the occurrence of non-compliance and disloyal employees.

Computer Access

Physical access versus logical access; Physical access is just simply the ability to touch, see, and modify computer installations; physical access usually does not have the tight controls. Logical access is the access to networks through intranet or Internet. Most logical access requires some type of password combination to confirm identity. Access rick include the Inventory process and time keeping systems. Kudler will continue to...

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