Question

INTERNAL CONTROL PAPER

Your are to find an article from sources such as The Wall Street Journal , The Columbus Dispatch, Business First, etc. The article must be about a news story that occurred or was first reported no earlier than four months before the first day of the current semester. The article must summarize a breakdown of internal control of an organization and the theft of assets or other white collar crime that resulted. If you cannot find such an article, then you must find an article which summarizes how corporate crime has disappeared in the referenced time frame and summarize it.

To be included in you assignment (in the order listed below):

1. Source of article
2. Date of article
3. Title of article
4. Page Number where article appeared
5. Summary of the article
6. A statement of what could have prevented the internal control breakdown.
7. What you learned that you could apply on the job in real life.
8. An attachment of, or link to, the article.

Answer 1

Below Answer based on recent scenario which published in the Wall Street Journal about " Disclosure and Internal coontrol issue for Virus Impacts " . This control is much needed to be implemented in every company to protect theie Business , product environment .

Risk factor relates to issue such as potential natural disaster or pandemics. Also need to update the risk factor and ensure that compamy must provide more specific about potential impact of COVID 19

Under MD&A - Company must disclose all potential materla favorable and unfavourable impact on revenue. Under COVID 19, company has to disclose potential impact on operation, financial condition or liquidity .

Also risk matter need to update inthe footnote - need to disclose potential impact of COVID 19 in their financial statement as well as others accoun specific disclosure

Also Registraint should consut with legal and find out potential users :

loss of custimers

impact of distributor

supply chain interrupption

production delays

Impact on human capital

Regulatory change

may be the risk of loss on significant contractrs

Comoany need to estbakish following internal control - need to modify exisiting control . All material impact , comtrol , must be disclose in FORM 10 Q + 10k in Quarterly and annual fillings

Also need to look into " Operation effectiveness of control , assessing in breakown of revenue type control

Also need to address that entities should also consider management ability to complete its financial reporting process and prepare financial statement on a timely basis . Delay in financial disclosire or closing may harm or create erroe in the financial statement

Entities need to ensure that they have properly designed and implemeted control related to the section and application of GAAP