Internal Control – Short Cases
For Internal Controls: A Compendium of Short Cases, choose 4 of the 6 short cases and answer its respective questions below. Reponses should be well written, in paragraph form, using proper grammar and citations for any writing not your own.
- What were your initial thoughts of Jeff Smith’s performance as Controller? Given what happened later in this case, are you surprised given your perception of Jeff Smith? Explain.
- What internal controls could have been in place to prevent this from happening?
- Describe the flaws in RME’s credit authorization process, and what recommendations you would suggest to implement in the process.
- As the auditor, what other information (not given in the case) might you inquire about related to the overall sales cycle / process? Why would you be interested in such information?
- Use the questions as stated in the case (answer both).
- For purposes of evaluating internal controls, how does your client upgrading its accounting software impact your audit risk? Explain.
- Discuss the upsides and downsides of allowing remote access to the company’s system. Be sure to include internal control considerations in your responses.
- What factors should an organization take into considerations when contemplating a keep in-house vs outsource decision for a key process? Be sure to include at least some internal control considerations in your response.
- Describe at least three internal control weaknesses related to computer and data security at AAA prior to the flood occurrence. For each weakness, make a suggestion of a control, policy, procedure, etc as to what would have promoted stronger computer security.
- Describe how you as Controller would design the employee reimbursement process to avoid the issues that occurred related to damaged vehicles subsequent to the accident at the local plant.