Internal Control and Evaluation Risks

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Internal Control and Risk Evaluation – Kudler Fine Foods
Lisa Cook
University of Phoenix
ACC/542
August 15, 2011

Internal Control and Risk Evaluation Internal controls and risk assessments are an integral part for a company to be successful. Management at Kudler Fine Foods has reviewed the flowcharts prepared and is requesting information on controls that will be required. Risks are none to be a negative event occurring in a company’s productivity. Internal controls are the policies and procedures put in place to reduce unforeseen occurrences associated with the risks. This brief will discuss the risks of Kudler Fine Food’s current Accounting Information System (AIS) evaluated by Team B and incorporate the controls into the flowcharts, design internal controls to mitigate risks to the systems, evaluate the application of internal controls to the systems, and discuss other controls, outside the system, that Kudler Fine Foods may need.
Risks in the Systems According to Hunton, Bryant, & Bagranoff (2004), “business enterprises face a variety of risks, including business, audit, security, and continuity risks” (pg. 48). When analyzing Kudler Fine Foods current information system the team found that Kudler lacked internal controls and risk evaluations required to run their information system. Several concerns were brought up as major potential risks. The three risks focused on are those of business, security, and continuity. Several of Kudler’s risks within the system were noted in regards to payroll, accounts payable, accounts receivable, and the inventory system as well. Business Risks A business risk is the likelihood that an organization will not achieve its business goals and objectives (Hunton, Bryant, & Bagranoff, 2004). The business goals and objectives of any organization may be affected by internal risk at the organizational level, for…...

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