Discussion and Participation Questions Essay Example | Topics and Well Written Essays - 1000 words

Discussion and Participation Questions - Essay Example1). Concurrently, it is worth mentioning that on that point are five identified elements that are crucial in any internal control administration to ensure effective and efficient implementation control environment, risk assessment, control activities, information and communication, and monitoring (Kansas earth University par. 4). Given these theoretical good examples, organizations that experience significant changes in terms of growth through diversification, expansion (in products or markets) or acquisition need considerable and appropriate changes in internal control systems that would cater to the transformations made. For example, in a small rural fix which started with only one branch, the internal control system preparedness in place should conform to the amount and quality of resources and corporate information that need to be safeguarded. A limited amount of physical control measures are introduced such as locked ke y-card access and locks so that at that place is no theft of valuables. Several organizations have policies which require supervision of any person who enters a bank vault (Bhattacharyya par. 7). ... In this regard, the internal control system of an expanding bank should be adjusted and adapted to the call for of its expansion by addressing more clientele, more resources, and therefore, more safeguards are necessary to prevent theft, parody, negligence, and wastage, as intended. In some examples provided by the Federal Bank of San Francisco, some components of a sound internal control framework include the following guidelines (1) safeguard access to physical and electronic assets and records (2) ensure adequate segregation and revolution of duties (3) identify, monitor and minimize conflicts of interest (4) establish and enforce authority and risk limits (5) maintain appropriate staffing levels and expertness and (5) conducting ongoing monitoring (Federal Reserve Bank of San Fra ncisco 2-3). Large commercial banks therefore require more involved and complicated but comprehensive internal control systems that would ensure safeguarding the resources of the banks and those of their growing number of clientele on an ongoing process. Works Cited Bhattacharyya, Madhurjya. Objectives of Internal Control. 8 July 2010. 15 December 2011 . Federal Reserve Bank of San Francisco. Intternall Conttrols and practicable Risk Remain on Our Radar Screen. On the Radar Screen November 2004 2-3. Kansas State University. Internal Controls. 30 June 2003. 15 December 2011 . Discussion Question 2 Describe a common fraud scheme for investments. Explain the controls that may be put in place to prevent the fraud. A common fraud scheme for investment was disclosed in the official website of the Federal Bureau of Investigation (FBI) that circulated in