1 . ) The Goodner's Huntington sales workplace should have integrated the three next objectives:
1 . Financial Credit reporting Objective- Can make sure that the financial record is dependable and free from fraudulent reporting and also handles the protecting of resources from unauthorized use.
installment payments on your Operations Objective- This includes business approach and strategies and the efficiency and productivity of procedures.
3. Conformity Objective- This will make sure that the business is in conformity with all appropriate laws and regulations.
installment payments on your ) All three of the goals in some way weren't followed by the Huntington workplace nor would management make an effort to enact the five parts related to the objectives. The biggest internal control weakness was that they depended on the credibility of personnel; therefore they didn't apply many control procedures that could have significantly reduced Woody's ability to take from the organization. There was simply no segregation of duties in the Huntington workplace which is crucial to successful internal control. The product sales representative (Woody, along with two additional employees, was able to do any with the four types of functional responsibilities. The tire plant also acquired no physical control of their inventory; access was available to employees who have did not need it. Furthermore, there are no get controls on the computer systems to lock out product sales reps coming from entering accounting entries. This problem existed from your company's utilization of an accounting system that was suitable for small businesses, not businesses that had revenue of practically $40 mil a year.
3. ) The first thing that should be used is that managing should established the goals and stick to the five parts related to the objectives. In the event that this had been done in the first place Woody's occurrence likely could have never occurred. However , to mention ideas to help alleviate the weakness I identified, I do believe the first priority in the company ought to be to install accounting software that is certainly able...