Accounting Internal Controls That Must Essay

Excerpt from Essay :

The proper authorization to complete an inventory also needs to include training on how to manage the exceptions that often occur when physical counting is taking place (Corman, 1988).

The third principle to have adequate documents and records in place that can be quickly be used by the teams completing the audits. This also needs to be preceded with a training session focused on how to also manage exceptions to the paperwork as well, as each company's physical inventory processes are unique to their specific business models (Randall, 1984).

The fourth and fifth principles are physical controls and independent checks on performance. These two principles need to anchor all training activity and also be continually audited to ensure performance to standards set over decades are attained. Physical controls and independent checks are also indispensable to the audit and final approval of physical inventory levels, which is the first step in reconciling financial statements and closing out a financial period (Corman, 1988). There also needs to be a coordinated strategy across all of these factors to ensure there is a unified audit can be completed with a high level of accuracy.

References

Corman, T.R. (1988). Inventory management. Hospital Materiel Management Quarterly, 10(2), 5-5.

Giannoccaro, I., & Pontrandolfo, P. (2002). Inventory management in supply chains: A reinforcement learning approach. International Journal of Production Economics, 78(2), 153-161.

Howard, K. (1984). Inventory management in practice. International Journal of Physical Distribution & Logistics Management, 14(2), 3-3.

Randall,…

Sources Used in Document:

References

Corman, T.R. (1988). Inventory management. Hospital Materiel Management Quarterly, 10(2), 5-5.

Giannoccaro, I., & Pontrandolfo, P. (2002). Inventory management in supply chains: A reinforcement learning approach. International Journal of Production Economics, 78(2), 153-161.

Howard, K. (1984). Inventory management in practice. International Journal of Physical Distribution & Logistics Management, 14(2), 3-3.

Randall, a.M. (1984). Computerized inventory management: A return to basics. Hospital Materiel Management Quarterly, 5(3), 12-12.

Cite This Essay:

"Accounting Internal Controls That Must" (2012, June 26) Retrieved May 30, 2020, from
https://www.paperdue.com/essay/accounting-internal-controls-that-must-64409

"Accounting Internal Controls That Must" 26 June 2012. Web.30 May. 2020. <
https://www.paperdue.com/essay/accounting-internal-controls-that-must-64409>

"Accounting Internal Controls That Must", 26 June 2012, Accessed.30 May. 2020,
https://www.paperdue.com/essay/accounting-internal-controls-that-must-64409

Advertisements