Question

All organizations should have systems of internal control. Research two businesses in Kern County (one could be your place of employment) and discuss their types of internal controls or lack of internal controls. Share your position on internal controls and why you feel they are valuable or not valuable to an organization.

Answer 1

Internal controls are essential for organizations to safeguard assets, maintain accurate financial reporting, and promote accountability. We discuss two businesses in Kern County, one with strong internal controls and another lacking them.

Step-by-step explanation:

Internal controls are essential for all organizations as they help to safeguard assets and ensure accuracy in financial reporting. Let's discuss two businesses in Kern County and their internal controls:

1. Company A: Company A, a nonprofit organization, has strong internal controls in place. They have separate departments responsible for financial transactions, inventory management, and employee payroll. The organization conducts regular audits to assess the effectiveness of their internal controls.
2. Company B: Company B, a small local business, lacks proper internal controls. They do not have a dedicated accounting department, resulting in a lack of segregation of duties. This increases the risk of fraud or errors in financial reporting.

I believe internal controls are valuable to organizations because they help prevent fraud, ensure accurate financial reporting, and promote accountability among employees. Furthermore, having strong internal controls instills confidence in stakeholders and can help organizations maintain a positive reputation.