Communication in Accounting PREVENT EMBEZZLEMENT FROM SAMIRA

IG011 - Assignment Instruction Overview This Performance Task Assessment includes six parts. Each part involves a different case scenario that will challenge you to apply your knowledge about how to communicate accounting information in different business situations. You are strongly encouraged to use the Academic Writing Checklist when completing this Assessment. Your response to this Assessment should: Reflect the criteria provided in the Rubric. Adhere to the required length. Conform to APA style guidelines. You may use Walden Writing Center's APA Course Paper Template here. Professional Skills: Written Communication, Technology, and Critical Thinking and Problem Solving are assessed in this Competency. This Assessment requires submission of two (2) files. Save your files as follows: Save Part 1 as IG011_Part1_firstinitial_lastname (for example, IG011_Part1_J_Smith). Save Parts 2-6 as IG011_Parts2-6_firstinitial_lastname. For each scenario, you will assume an important role within

Communication in
Accounting
PREVENT EMBEZZLEMENT
FROM SAMIRA KAMRAN

Organization of Community Arts
(Embezzlement)
 Mr. Smith is working with company for last decade.
 Company’s all accounting transactions has handled of company
Mr. Smith.
 Board of Directors does not oversight.
 The personal account of Mr. Jared are credited in by Membership
fees.
 Jared issues personal checks from the company’s bank account.
 Jared incorporated an fake companies to issue checks and then
deposit in his personal account.

Internal Control System

Practices to Prevent
Embezzlement
 By asserting risks
 By observing the activities
 By giving information
 By communicating further
 By managing Environment

Elements of environment to Control
 Rectitude
 Ethics and Value
 Competence
 Management’s Philosophy
 Operating method
 Board of Director’s Attention and direction

Risk Assessment
 Determine the company’s objective
 Stability in each level
 Determine Company’s Potential Risks
 Options to fix such Risks

Control Activities
 All Approvals
 All Authorizations
 All Verifications
 All correction
 All Asset’s security
 Suggested duties
 Reviewed Operating Performance

Information and Communication
 Determination
 Communicated in basis of Timeframe
 Information Systems for Producing Reports
 Operation report
 Financial performance’s repor

Monitoring Activities
 Activities of Management both Upper and lower
 ISC must be implemented, Designed and Monitored
 Control all internal activities
 Measure system’s performance periodically

Points to remember
 Each level of internal control affect the people.
 The goal and objective of the firm will easily achieved by
implementing effective internal control.
 Internal Control Systems as well as internal and external
environment of the company changes always.

Responsibilities of the Management
 To established, properly documented, maintained, and
reviewed the Internal Controls in the firm.
 To provide leadership and direction in setting objectives and
assessing risks.
 To maximize the strength and to minimize the weakness.
 To supervise and ensure that Internal Controls in operation.
 To obtain internal control in training for all employees of the
company as well as including management.

Responsibilities of Employee
 To Perform all internal control activities that assigned by the
management.
 To Report significant Internal Control deficiencies to the
supervisors.

Method to Ensure Financial
Accuracy
 By Segregating Accounting Duties
 By providing access of Financial System to certain people
 By Increasing Oversight
 By reviewing Financial Statement by outside auditor
 By backing up the payments with signed documentation.
 By only dealing with Approved vendors
 By auditing financial report of the company periodically by
external resource.

References
 Signature Analytics. 5 Ways to Improve Internal Accounting Controls
& Accounting Oversight in your Business. Retrieved from
https://signatureanalytics.com/5-ways-to-improve-internal-controls-a
nd-oversight-in-your-business/
 The CAQ. Org. Guide to Internal Control Over Financial Reporting.
Retrieved from
https://www.thecaq.org/sites/default/files/caq_icfr_042513.pdf
 Hayes, M., Lindinger, J., & Cavalieri, L. (February, 2017). A 3-Step
Process to Ensure Key Reports Are Accurate and Complete. Retrieved
from http://www.aclordi.com/a-3-step-process-to-ensure-key-
reports-are-accurate-and-complete/