Professional Documents
Culture Documents
Internal Control Assessment PDF
Internal Control Assessment PDF
ASSESSMENT
Romlan’s Furniture
FATHER SATURNINO URIOS UNIVERSITY
ACCOUNTANCY PROGRAM
AUD 311 CORPORATE GOVERNANCE, BUSINESS
ETHICS, RISK MANAGEMENT AND
INTERNAL CONTROL
I. Introduction
The concept of risk management is gaining attention not just in business
and management firms but also in academe. While academe teaches the
methods of risk management as well as factors affecting risks, very little have
been using it as for their own assessment. Most of academic institutions have
been established for many years, but some of them still uses the system of
instruction, authority and communication that is no longer applicable or
working in 21st century.
Risk management is basically an approach in which we explore identify,
analyze and mitigate the risks that can affect our project. Risk management is
an important part of project management which if done efficiently leads to the
success of your project (Majeed, 2018)
II. Purpose
The purpose of this Internal Control Assessment is to evaluate and analyze the
performance, productivity and competitiveness of Romlan’s Furniture. The risk
assessment provides data from questionnaires and observations of the assessor
regarding the production, processes and environment of the business.
III. Scope
The scope of this internal control assessment assessed the business
productivity, efficiency, processes and procedures and its associated risks to
eliminate and manage its vulnerabilities caused by its threats external, and
internal.
IV. Background of the Business
Romlan’s Furniture was established in 2011 by Romlan R. Durano. It is first
just a family hobby rather than a business, however due to the continuous
demand of its customers, it has become a legitimate business by the Durano
Family. It has been operating for nine (9) years now and still going strong in
delivering high quality furniture in the city.
Mission
Build a product with the highest quality, making everyone’s home a
better place.
Vision
Providing comfort, quality, and modest pieces of furniture inside
everyone’s homes.
FATHER SATURNINO URIOS UNIVERSITY
ACCOUNTANCY PROGRAM
AUD 311 CORPORATE GOVERNANCE, BUSINESS
ETHICS, RISK MANAGEMENT AND
INTERNAL CONTROL
Control Environment
1. Demonstrate Commitment to Integrity and Ethical Values
2. Exercise Oversight Responsibility
3. Demonstrate Commitment to Competence
Risk Assessment
4. Define Objectives and Risk Tolerances
5. Identify, Analyze, and Respond to Risks
6. Assess Fraud Risk
7. Identify, Analyze, and Respond to Change
Control Activities
8. Design Control Activities
9. Implement Control Activities
Monitoring
10. Perform Monitoring Activities
11. Evaluate Issues and Remediate Deficiencies
Monitoring 4
0 1 2 3 4 5
FATHER SATURNINO URIOS UNIVERSITY
ACCOUNTANCY PROGRAM
AUD 311 CORPORATE GOVERNANCE, BUSINESS
ETHICS, RISK MANAGEMENT AND
INTERNAL CONTROL
Based on the data collected, the controlling activities which involves
responses to objectives and its associated risks, and the designing of its
appropriate control activities are the weakest point in the business operations.
This means that they are unlikely to control the risk, if there are any. The
business needs to design policies, procedures, and techniques in aiding the risk
may occur impacting the business’s capital, human resources and its assets.
The utilization of control activities minimizes the effects and impact of the
risk. It is manifested through segregation of duties, verification, or the
performance planning and evaluation.
VII. Conclusion
Romlan’s Furniture has been in the furniture industry for nine years. It is
indeed a manifestation that the business has overcome the challenges and
problems in the past. However, as the time changes, the market structure,
demand and its business standpoint changes too. It calls for a tighter internal
control in the business to avoid or minimize the effects of risk that they’re
exposed to.
VIII. Recommendation
Among other factors controlling is still a vital part of the business. It aims to
not just control business processes in the business but also to assess, evaluate
and analyze potential factors that might affect its productivity, efficiency and
profitability of the business. This means that Romlan’s Furniture needs to
establish their own controls in doing their business.
IX. References
b) Recruitment, development, and Management recruits, develops, and retains competent personnel to achieve desired
retention of individuals. objectives.
FATHER SATURNINO URIOS UNIVERSITY
ACCOUNTANCY PROGRAM
AUD 311 CORPORATE GOVERNANCE, BUSINESS
ETHICS, RISK MANAGEMENT AND
INTERNAL CONTROL
Assessment Factor Indication of Controls 1 2 3 4 5
Management defines succession plans to address the need to replace competent
c) Succession and contingency plans and personnel over the long term, as well as contingency plans to address the need to
preparation. respond to sudden personnel changes that could compromise the internal control
system.
Section 4 – Monitoring