Create an infographic that contains information about internal control concepts.
Your team members, in addition to processing and reviewing the various documents (hard copies and/or electronic versions), track metrics around purchasing. These metrics include items such as the number of orders by vendor, spending by expense category and functional department, inventory levels, etc. Your team can also report and track information by person such as who requested purchases, who received materials, and who approved invoices to go to accounts payable for payment.
Because of the nature of work in your department and the metrics that are tracked, your team members can play a role in preventing and detecting fraud, helping to reduce financial risk for the company. However, none of the team have been trained on internal control concepts. You currently have no funds available in your budget to pay for training and must create your own materials for the team to learn from and use for reference.
Create an infographic that contains information about internal control concepts. The infographic will have three sections – one each for preventative, detective, and corrective controls. In each section, include information on two specific internal control tactics or methods that fall under the category type and that are applicable to the work performed in the department.
The infographic should also include a title and introductory summary statement. Cite all sources of information using APA style at the bottom of the infographic in smaller font.
Control environment: This refers to the overall attitude, awareness, and actions of an organization’s management and employees regarding internal control.
Risk assessment: This involves identifying and analyzing potential risks that could prevent an organization from achieving its objectives.
Control activities: These are specific policies and procedures implemented to address identified risks and ensure
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Information and communication: This involves collecting, analyzing, and communicating information relevant to an organization’s objectives to ensure that decisions are made based on accurate and timely information.
Monitoring: This involves ongoing review and evaluation of the effectiveness of an organization’s internal control system.
Separation of duties: This refers to the practice of dividing key tasks and responsibilities among different individuals to prevent fraud, errors, or other irregularities.
Authorization and approval: This involves ensuring that all transactions and activities are authorized and approved by appropriate personnel before they are executed.
Physical controls: These are controls that are designed to protect an organization’s assets from loss, theft, or damage.
Segregation of incompatible duties: This refers to separating duties that are incompatible to prevent any conflicts of interest or opportunities for fraud.
Documentation and record-keeping: This involves keeping accurate and complete records of all transactions and activities to facilitate monitoring and auditing.
These concepts are essential for effective internal control, and an organization’s success in achieving its objectives depends on their implementation.