Internal control structure within an organization

Description

Discussion Board, 15 multiple choice questions and 7 questions to be worked out. All accounting questions.

Sign-in for the website for the 7 questions would be provided so all the parts can be shown.

Everything will be in the document below.

Discussion Board

Multiple choice is due first so if it can be completed before, that would be perfect

A large part of Chapter 8 is focused on key aspects of a strong internal control structure within an organization. According to the COSO Internal Control Framework, those key aspects include: The Control Environment (“tone at the top”), Risk Assessment, Control Activities, Information and Communication, and Monitoring. Special focus is placed on the six principles of Control Activities (establishment of responsibilty, segregation of duties, documentation procedures, physical controls, independent internal verification, human resource controls), which are the core mechanisms for addressing risks and potential fraud. In fact, throughout the chapter, several real-world fraud situations are presented and tied to failures in certain components of the internal control structure, namely these Control Activities principles.

Required:

1. Conduct some basic research via the internet and identify a case where a major fraud (financial statement or other), or misappropriation of assets resulted in negative implications to the impacted company and its stakeholders (some notable cases include Enron, WorldCom, Waste Management)

2. After doing so, evaluate and document which of the key aspects of the COSO Internal Control Framework (including the key principles of Control Activities as may be appropriate) may have failed in allowing the debacle to perpetuate. Be sure to be specific in outlining the core issue of the case and how it links to the key aspect of the COSO Internal Control Framework failure you noted.

3. What could have been done to prevent the failure in the context of what you noted in your response to #2 above?

To guide you in your response, the various cases throughout the text labeled “Anatomy of a Fraud” can assist you in linking the fraud, misappropriation, to the related COSO internal control and why.