The Violet Bay School District Deficit of 2005: Evaluating Internal Control and Identifying Risks

2010 ◽  
Vol 25 (1) ◽  
pp. 119-153 ◽  
Author(s):  
Laurie J. Henry ◽  
Michael E. Bitter ◽  
Terry Kubichan
Keyword(s):  
School District ◽  
Internal Control ◽  
School System ◽  
Ethical Issues ◽  
Practical Experience ◽  
Control Problems ◽  
Control Environment ◽  
Grand Jury ◽  
Strong Control

ABSTRACT: In August 2005, Violet Bay taxpayers were surprised to learn that their school system had amassed a $7 million deficit for the 2004–2005 budget year, despite previous assurances of a surplus. Ultimately, the actual deficit was found to be $12.1 million. A special grand jury investigation uncovered numerous internal control problems that contributed to the deficit.This instructional case provides students the opportunity to gain a better understanding of the importance of internal control, particularly a strong control environment, through examination of the problems encountered by an actual governmental entity, renamed the Violet Bay School District. It also gives students some practical experience with tasks such as gaining an understanding of an entity and identifying its business risks, evaluation of internal control using the five components of the Committee of Sponsoring Organizations (COSO) framework, identification of fraud indicators, and consideration of the likelihood of fraud occurrence. The case also provides exposure to ethical issues.

Who's in Control of the Ark? A Study of Internal Controls in Operating and Auditing A Small Preschool

2019 ◽  
Vol 34 (2) ◽  
pp. 23-39 ◽  
Author(s):  
Elizabeth V. Grace ◽  
Ashley Davis
Keyword(s):  
Internal Control ◽  
Business Processes ◽  
Practical Experience ◽  
Auditor Independence ◽  
Internal Controls ◽  
Control Environment ◽  
For Profit ◽  
Not For Profit ◽  
Analytical Thinking ◽  
Financial Transactions

ABSTRACT This instructional case encourages analytical thinking about internal controls in both the operations and audit of a small, not-for-profit organization. Students examine a control environment characterized by unauthorized expenditures, lack of documentation, and missing documents. Using the COSO (2013) framework, students demonstrate understanding of business processes as they identify internal control risks and deficiencies, and recommend control improvements. Auditing students additionally apply management assertions about financial transactions and assess auditor independence. Students gain practical experience in developing flowcharts of accounting processes and writing a management letter for a familiar organization: a preschool.

IMPLEMENTASI SISTEM PENGENDALIAN INTERNAL PADA PERUSAHAAN JASA

2019 ◽  
Vol 2 (2) ◽  
pp. 110
Author(s):  
Wahyu Wahyu Wahyu ◽  
Marliyati Marliyati Marliyati ◽  
I. Nyoman Romangsi
Keyword(s):  
Risk Assessment ◽  
Operating Procedure ◽  
Internal Control ◽  
Standard Operating Procedure ◽  
Control Environment ◽  
Service Company ◽  
Standard Operating ◽  
Information And Communication

The aim of this article is to analyze internal control in service company. The analyze used the components of internal control according to COSO: control environment, risk assessment, control activities, information and communication, monitoring. Analysis of internal control used the data obtained through observation, questionnaires, interview, and documentary. Based on this analysis results can be concluded, that the dual positions refer with company SOP (Standard Operating Procedure). Separation of task does not work because that the dual positions. Therefore, the component of control activities applied at company is not in accordance with the component of control activities according to COSO. Nonconformity components still results in very effective internal control because the purpose of the internal control still remains to be achieved even though there are components that are not in accordance with the internal control components according to COSO.

scholarly journals EVALUASI PENERAPAN SISTEM PENGENDALIAN INTERN PERSEDIAAN BARANG DAGANGAN PADA TOKO MAHKOTA DIESEL MANADO

2017 ◽  
Vol 12 (01) ◽  
Author(s):  
Juwita Natalia Samuna ◽  
Harijanto Sabijono ◽  
Stanley Kho Walandouw
Keyword(s):  
Control System ◽  
Qualitative Analysis ◽  
Internal Control ◽  
Spare Parts ◽  
Accounting System ◽  
Control Environment ◽  
Analysis Method ◽  
Serial Number ◽  
Internal Control System ◽  
Control Procedures

Internal control system is a way or system that can prevent the occurrence of irregularities in the company. Internal control system of the inventory aims to protect the company's assets from theft. The research object is taken at the Manado Diesel Crown Store is one of the stores in Manado that runs the business by selling machines and spare parts. This study aims to evaluate the effectiveness of the application of internal control system merchandise inventory at Diesel Manado.The method of analysis used in this research is descriptive qualitative analysis method. Based on the results of internal control inventory of merchandise inventory at Manado Diesel Crown Store, then in the control environment that occurs in the company, there is a double position between the sales and the warehouse. In the accounting system, the documents used are not serial number printed. In control procedures, authorization system is only on certain transactions.Keywords: internal control system, merchandise inventory

scholarly journals PENERAPAN SISTEM PENGENDALIAN INTERN TERHADAP PEMBERIAN KREDIT PADA PT PEGADAIAN (PERSERO) UNIT PELAYANAN CABANG KALIWUNGU

2020 ◽  
Vol 3 (1) ◽  
pp. 39
Author(s):  
Arini Amalia Rahma ◽  
Siti Mutmainah
Keyword(s):  
Risk Assessment ◽  
Control System ◽  
Internal Control ◽  
Qualitative Data ◽  
Secondary Data ◽  
Primary Data ◽  
Control Environment ◽  
Internal Control System ◽  
Information And Communication ◽  
And Control

<em>Internal control is a process carried out by the company to provide adequate guarantees for achieving control objectives. The objective of this Research is to find out the current internal control system that is applied at PT Pegadaian (Persero) Kaliwungu Branch Service in the process of granting credit. The next objective is to identify whether the components of internal control applied are according to COSO. The data used are qualitative data, primary data, and secondary data. The methods of collecting data are interview, observation, and questionnaire. For writing the Research uses descriptive and exposition methods. There are five components of internal control according to the Committee of Sponsoring Organization (COSO), they are Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. The results of the discussion in the Research shows that the application of the internal control system for granting credit at PT Pegadaian (Persero) Kaliwungu Branch Service is in accordance with COSO internal control component, but the Control Environment and Control Activities has not been fully implemented.</em>

scholarly journals IPTEKS PENGENDALIAN INTERN ASET TETAP PADA PT. LUMBUNG BERKAT INDONESIA

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Jesella Lourina Makaluas ◽  
Winston Pontoh
Keyword(s):  
Internal Control ◽  
Financial Statements ◽  
Internal Controls ◽  
Audit Committees ◽  
Productive Capacity ◽  
Control Environment ◽  
Related Information ◽  
Fixed Assets ◽  
Useful Life ◽  
A Company

PT Lumbung Berkat Indonesia, as a company entity engaged in construction, of course, this company has various types of fixed assets. The Company's fixed assets should be secured by means of internal controls of fixed assets that will oversee, control costs incurred to acquire fixed assets, increase or extend the fixed asset's useful life and increase operational contribution and productive capacity of fixed assets in order to safeguard the company's property. Based on the research that has been done at PT Lumbung Berkat Indonesia and the existing discussion, the conclusion that can be taken is that the internal control of fixed assets will run efficiently if the points that exist in the elements of control environment, risk assessment, control activities, related information , and monitoring has been well executed amongst companies to perform physical matching of fixed assets, appropriate division of functions and responsibilities, separating expenditures of income and expenses, following insurance against fixed assets, creating audit committees and implementing the abolition and disposal of fixed assets. Suggestions for better companies to explore the knowledge and application of internal control of good fixed assets for corporate activities to run effectively and efficiently and the presentation of financial statements and information about the company's fixed assets is accurate and reliable.Keywords: Internal Control, Fixed Assets

scholarly journals The Efficiency of Applying the Internal Control Components Based on COSO Framework to Transparently Carry out Tasks and Services, Ensure Integrity and Enhance Quality and Efficiency: Case Study - The Greater Amman Municipality

2020 ◽  
Vol 11 (2) ◽  
pp. 371
Author(s):  
Ola Muhammad Khersiat
Keyword(s):  
Internal Control ◽  
Positive Impact ◽  
Internal Audit ◽  
Independent Study ◽  
Control Environment ◽  
Communications Systems ◽  
Control Procedures ◽  
And Control

This study aimed to measure the efficiency of employing the internal control components based on COSO framework to transparently carry out tasks and services, ensure integrity and enhance quality and efficiency, so as to contribute to promoting the adoption of internal control components based on the COSO framework, applying them and analyzing their efficiency in performing tasks transparently, ensuring integrity and enhancing quality and efficiency, particularly with the Amman`s Municipality efforts to create a directorate that operates the internal control while ensuring the integrity of the proceedings, carrying out tasks and services transparently and boosting citizen's confidence in the Greater Amman Municipality resolutions. One of the main findings of the study would be in the fact that the independent study variables represented in the internal audit based on the COSO framework has a highly positive impact in performing tasks transparently to ensure integrity, boost quality and efficiency at the Greater Amman Municipality. Results show that the communications systems component was the most highly applicable, followed by the follow-up and control procedures and activities, whereas the control environment came third, followed by risks and response procedures identification and assessment, and finally came the appropriate follow-up component in the fifth place.

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