Justification for an indoor Control System
April 2, 2012
Justification pertaining to an Internal Control System
Working as the controller in this company I am accountable for all of the accounting operations, consisting of the creating of financial reports, maintenance of the accounting program that property the accounting data, and place internal handles to mitigate risk and enhance the reliability of the studies. The company's management has came up to me with questions about the advantages of an internal control system. And so i will justify the need for the machine when handles are set up with insurance and collection approaches. Likewise I will describe why current approaches are valid but why an internal system will probably be much more beneficial. Controls set up with insurance approach
As we have a look at the internal regulates with the insurance approach we will have some of the advantages of this approach. The insurance approach declines under the category of transfer. " By shifting a risk, a company solicits the involvement of a third party to take on some of the impact will need to a risk event occurвЂќ(McCarthy, Flynn, & Brownstein, 2004, P. 94). Insurance can be described as type of risikomanagement " mainly used to hedge against the likelihood of a conditional, uncertain lossвЂќ (Wikipedia, 2012). So if a company will get some cost-effective insurance with deductibles which the company feels comfortable with then simply this approach can be quite beneficial in the event of a catastrophic disaster mainly because then the firm would be responsible for paying of the deductible as well as the insurance company could pay the rest. Controls in position with stock portfolio approach
Now all of us will look at the internal regulates with a stock portfolio approach, and we'll see the benefits from this approach. The portfolio approach is used to reduce risk when maximizing the investment. Profile risk is " the possibility that an investment portfolio may not achieve its goals. There are a number of...
References: McCarthy, P., Flynn, T., & Brownstein, Ur. (2004). Risk from the CEO and panel perspective: What all managers need to know regarding growth within a turbulent world. New York, NY: McGraw-Hill.
Spowart, M. (2012). The Definition of any Portfolio Risk. Retrieved from http://www.ehow.com/about_6193136_definition-portfolio-risk.html
Wikipedia. (2012, April 2). Insurance. Retrieved via http://en.wikipedia.org/wiki/Insurance
Wikipedia. (2012, Drive 24). Worth at Risk. Recovered from http://en.wikipedia.org/wiki/Value_at_risk
Wikipedia. (2012, March 29). Internal Control. Retrieved via http://en.wikipedia.org/wiki/Internal_control