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.
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.
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.
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.
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.
st helpful to explore what democracy truly entails. Democracy is a system of government by the whole population or all the eligible members of a state, typically through elected representatives. A common characteristic in all democracies is existence of an election; whereby citizens of the country can exercise their rights to express their preferred choice of political actors. However, this is not the only characteristic, as the study of political science has made expansive research on how a democracy is actually determined. For instance, The Democracy-Dictatorship Measure by Cheibub, Gandhi and Vreeland (2010) serves as a dichotomous measure of where a country stands in terms of its system of governance. A country is a democracy if it elects its chief executive, if it elects it’s legislature, if there is more than one party competing in the elections as well as if alternation in power has taken place. More popularly is the use of the Polity IV score, which is calculated by subtracting a country’s Democracy score to its Autocracy score (democracies generally score a +6 to a +10). Different countries practice democracy differently; for instance, some democracies practice a parliamentary system, whereas others adopt a presidential system, but in the end, the power is in the people. To evaluate the feasibility of all countries becoming and remaining democratic, we have to analyse certain controversial factors and opinions that have been brought up by political scientists around the globe. Some political scientists do not hold on to the opinion that all countries could become democracies. This is because of factors such as culture and religion that are thought to reduce the probability of a country becoming democratic. Why this is so is because of the perception that democracy just is not suited for certain cultures and religions and in extension, the lifestyles of people who practice them. Certain scholars hold primordialist arguments that treat culture and religion as something that is objective and inherited. This basically means that cultures and religions are unable to go through any form of modernization that allows to it adopt democracy. In relation to this, Almond and Verba conducted an interesting research on the existence of a particular “political culture”, in particular, a civic culture. A civic culture reflects a cluster of attitudes that include the belief on the part of individuals that they can influence political decisions, positive feelings toward the political system, high levels of interpersonal trust and preferences for gradual societal change. Almond and Verba believed that for a country to be democratic, its citizens needed to have a civic culture. Besides this, there are also arguments that state that specific religions just do not have the ideal grounds for democracy. Take Islam for example; it is believed that the rules and ideals in Islamic culture is incompatible with the ideals of a democratic nation. For instance, Islam’s ob>GET ANSWER