Thursday, July 1, 2021

Review of internal controls article

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This article deals with how to use internal controls to prevent thefts from the company. It tells a story of what happened to one company with an accountant skimming funds from the company, then the article provides several ideas to implement internal controls.

This article deals with decision making that top and middle managers need to do dealing with internal control policies. For organizations that do not have these polices implemented in their organization, nor realized for such policies, this article may bring key managers to realize the need to make a decision regarding internal control, the first step in the decision making process. The article first poses a problem that could occur in many organizations without management realizing it, internal theft. Then it provides for the alternative of implementing internal control checks and balances. The article then asks several questions directed toward managers to help them implement basic internal control policies in an organization. This article includes a general section of questions and ideas to be directed toward top managers; it then divides questions into sections, dealing with internal control within certain departments. This allows for either traditional or modern planning approaches. Because some organizations allow for more decentralized planning, this is very helpful to a manager who wishes to implement internal control. I would agree with the way that this article tackles the problem of internal theft, he came up with some great ideas on how to put in place checks and balances in an organization. The way that a reader would use this document is parallel to five steps of decision making found in the textbook, in that respect I think that the author did an excellent job of putting forth the material in an easy and understandable way.

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