Controls for IT and Reporting & Evaluation

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1 Pamela Kaminski ACC/544 May 23, 2011 Adriane Treasure
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2 The objective of reviewing the internal controls for reporting is to test their affect against the reporting and uncover any insufficient reporting on programs, segregation of duties and the implementation of programs. By investigating the proper internal controls that should be implemented, they will provide better understanding and structure in creating a more controlled and secure information system for the company. A few suggestions will be addressed and explained so that companies can opt which framework will succeed with the Information Technology (IT) programs in place. Internal Control Reporting Options Internal controls play a major role in reporting for a company. Companies have found loop-holes and have gotten around these controls or the controls were not strong enough. Sarbanes Oxley (SOX) has made companies comply with the new rules and regulations and to report more effectively and adequately so that the information is reliable to others. SOX also assigns executives or officers of the company to detect the weaknesses of the controls and improve on them. Another area that SOX focuses in on is the relationship between accounting errors and internal controls. They can be related or they can be independent of each other. Improving internal controls would be one method to determine if they are related or not. If the controls are improved and they do not decrease the errors made with the reporting, then it is clear that the errors are unintentional accounting mistakes or fraud. The errors could be caused by incorrect revenue-recognition or weak segregation of duties (Grant, Miller, & Alali, 2008).
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3 Evaluated Criteria Internal Controls The main goal for internal controls for Information Technology (IT) is to reduce and manage any risks that may arise. The following four points are in a position to perform these goals that are set, efficiency, effectiveness, reliability, and compliance. Efficiency. Efficiency will allow the employees or the systems to utilize the most out of the available resources. When employees arrive to work, they should be using those hour of the day to complete the tasks at hand. If these hours are used efficiently and correctly, losses and discrepancies would decrease. The efficiency that needs to be in place can track the production as well as the lack of work that is done. Using IT controls to measure efficiency will assist in Effectiveness.
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This note was uploaded on 06/25/2011 for the course ACC 544 taught by Professor Adrianetreasure during the Spring '11 term at University of Phoenix.

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Controls for IT and Reporting & Evaluation - Running...

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