AL and MO is a builder, it is a middle sized firm with proceeds of practically ВЈ15 million, but inner company provides lots of problems, it will uncover the fraud. Because an accountant through this company, it is necessary to find the weakness in company that help the company to fix the current difficulty to ultimate the system. It can make the firm do batter in the future.
(a) Weaknesses in internal control and boost
Weakness 1: This company does not have any internal audit function, their internal control systems is incredibly basic. 1) The internal examine evaluates the all kinds of organization and control to corporation. It makes certain the organization whether compliance while using police and procedures, whether it satisfy a restrictions and a criterion, if use the options effectively and economically and also whether or not it achieves the organizations desired goals.
Nevertheless this company of AL and MO, they have no inner audit function. They cannot check out how the organization will manage. They cannot recognize the company's potential problem. They are really unable to assess the risk management operations and give the recommendations for reaching the objective of organization.
The corporation should set up the internal auditing organization or maybe the full-time interior auditor. For example , the internal taxation can control and supervise MO in operational activities. It can measure the all procurement whether satisfy the regulations, if meet the requirement of company, and the quote with the sales personnel whether verify to the established price etc. To ING, it can measure the factuality, legality and validity of finance revenues or legal issue on dealing with transactions. In a word, internal review to evaluate the chance of management and suggest intended for achieving the industry’s target.
2) The internal control, ' inside control inside control is definitely not simply a collection of procedures and check but instead includes a whole variety of activities...