Role Of Internal Controls Overview Internal controls are methods and strategies used to keep information and inventory safe from theft and to easily tell i

Role Of Internal Controls Overview
Internal controls are methods and strategies used to keep information and inventory safe from theft and to easily tell i

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Overview

Internal controls are methods and strategies used to keep information and inventory safe from theft and to easily tell if something is compromised or missing. In this assignment, you will recommend internal controls for safeguarding inventory from an accounting perspective and explain which financial statements are affected by missing inventory.

Scenario

One of your friends has opened a new wholesale electronics business and wants your help figuring out some inventory issues they are facing.

One night last week, there seemed to be fewer HD televisions in the warehouse than they expected. The last time they were in the warehouse was a week earlier, and they hadn’t noticed anything amiss.

As they looked around, they saw that the evening warehouse worker was filling the last orders of the day. The delivery driver and day warehouse worker were gone for the day, and the delivery van keys were on the desk that the warehouse workers shared. The doors to the loading dock were open, as was the door to the office area where the accountant, two customer service specialists, and the owner worked.

Knowing that you are familiar with accounting principles, they asked for your help in figuring out how to prevent this in the future.

Prompt

Based on what you have learned about internal controls, provide recommendations on what controls the business owner should put in place to prevent loss of inventory and ensure that any losses are reported immediately. Also, specify which parts of the financial statements are affected by these losses.

Specifically, you must address the following rubric criteria:

  • Role of Internal Controls
    Explain the role of internal controls in business settings. Also explain how not having internal controls in place may impact the accurate analysis of any wrongdoing.
  • Recommendations
    • Recommend at least two internal controls that should be put in place to prevent inventory from going “missing,” noting any assumptions you are making about the root cause of the missing products and how your recommendations will help address them.
    • Recommend at least one control that should be put in place to alert the owner if something is actually missing.
  • Financial Statements
    If you found that two $400 HD televisions were missing, explain which financial statements you would correct and how. Be specific as to accounts and amounts.

Guidelines for Submission

Submit a 1- to 2-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.

1/26/22, 9:35 PM Module Four Assignment Guidelines and Rubric – ACC-201-R3909 Financial Accounting 22EW3

https://learn.snhu.edu/d2l/le/content/957682/viewContent/16293699/View 1/3

Overview

Internal controls are methods and strategies used to keep informa�on and inventory safe from the� and to easily tell if something is compromised or missing. In this assignment, you

will recommend internal controls for safeguarding inventory from an accoun�ng perspec�ve and explain which financial statements are affected by missing inventory.

Scenario

One of your friends has opened a new wholesale electronics business and wants your help figuring out some inventory issues they are facing.

One night last week, there seemed to be fewer HD televisions in the warehouse than they expected. The last �me they were in the warehouse was a week earlier, and they hadn’t

no�ced anything amiss.

As they looked around, they saw that the evening warehouse worker was filling the last orders of the day. The delivery driver and day warehouse worker were gone for the day, and the

delivery van keys were on the desk that the warehouse workers shared. The doors to the loading dock were open, as was the door to the office area where the accountant, two

customer service specialists, and the owner worked.

Knowing that you are familiar with accoun�ng principles, they asked for your help in figuring out how to prevent this in the future.

Prompt

Based on what you have learned about internal controls, provide recommenda�ons on what controls the business owner should put in place to prevent loss of inventory and ensure

that any losses are reported immediately. Also, specify which parts of the financial statements are affected by these losses.

Specifically, you must address the following rubric criteria:

Role of Internal Controls

Explain the role of internal controls in business se�ngs. Also explain how not having internal controls in place may impact the accurate analysis of any wrongdoing.

Recommenda�ons

Recommend at least two internal controls that should be put in place to prevent inventory from going “missing,” no�ng any assump�ons you are making about the root

cause of the missing products and how your recommenda�ons will help address them.

Recommend at least one control that should be put in place to alert the owner if something is actually missing.

Financial Statements

If you found that two $400 HD televisions were missing, explain which financial statements you would correct and how. Be specific as to accounts and amounts.

Guidelines for Submission

Submit a 1- to 2-page Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.

Module Four Assignment Rubric

Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value



1/26/22, 9:35 PM Module Four Assignment Guidelines and Rubric – ACC-201-R3909 Financial Accounting 22EW3

https://learn.snhu.edu/d2l/le/content/957682/viewContent/16293699/View 2/3

Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Role of Internal Controls Exceeds proficiency in an

excep�onally clear, insigh�ul,

sophis�cated, or crea�ve

manner

Explains the role of internal

controls in business se�ngs

and how not having internal

controls in place may impact

the accurate analysis of

wrongdoing

Shows progress toward

proficiency, but with errors or

omissions; areas for

improvement may include not

fully explaining how a lack of

internal controls may impact

the accurate analysis of

wrongdoing

Does not a�empt criterion 20

Recommenda�ons Exceeds proficiency in an

excep�onally clear, insigh�ul,

sophis�cated, or crea�ve

manner

Recommends at least two

internal controls that should

be put in place to prevent

inventory from going

“missing,” no�ng any

assump�ons about the root

cause of the missing products

and how the

recommenda�ons will help

address them; recommends at

least one control that should

be put in place to alert the

owner if something is actually

missing

Shows progress toward

proficiency, but with errors or

omissions; areas for

improvement may include

recommending only one

internal control to prevent

inventory from going missing,

not including assump�ons

about the root cause of the

missing products and

recommenda�ons to address

them, not recommending an

internal control to alert the

owner if something goes

missing

Does not a�empt criterion 40

Financial Statements Exceeds proficiency in an

excep�onally clear, insigh�ul,

sophis�cated, or crea�ve

manner

Explains which financial

statements would need

correc�on and how; specifies

accounts and amounts

Shows progress toward

proficiency, but with errors or

omissions; areas for

improvement may include

providing only par�al

explana�on of some financial

statements that would need

correc�on, not specifying the

correct accounts and amounts

Does not a�empt criterion 20

1/26/22, 9:35 PM Module Four Assignment Guidelines and Rubric – ACC-201-R3909 Financial Accounting 22EW3

https://learn.snhu.edu/d2l/le/content/957682/viewContent/16293699/View 3/3

Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Ar�cula�on of Response Exceeds proficiency in an

excep�onally clear, insigh�ul,

sophis�cated, or crea�ve

manner

Clearly conveys meaning with

correct grammar, sentence

structure, and spelling,

demonstra�ng an

understanding of audience

and purpose

Shows progress toward

proficiency, but with errors in

grammar, sentence structure,

and spelling, nega�vely

impac�ng readability

Submission has cri�cal errors

in grammar, sentence

structure, and spelling,

preven�ng understanding of

ideas

15

Cita�ons and A�ribu�ons Uses cita�ons for ideas

requiring a�ribu�on, with few

or no minor errors

Uses cita�ons for ideas

requiring a�ribu�on, with

consistent minor errors

Uses cita�ons for ideas

requiring a�ribu�on, with

major errors

Does not use cita�ons for

ideas requiring a�ribu�on

5

Total: 100%

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