Free Case Study About Cost Accounting Case Study

In general, what are the major objectives of internalcontrol? What is their purpose?

The major purposes of internal controls include safeguarding all the assets of the company from internal, honest, and intentional losses of any form (“Internal Control Concepts,” n.d). Second, internal control ensures that all the information is accurate, reliable, and available on time when needed. Third, internal controls ensure that all the legal statutes are adhered to at all times. Fourth, internal control ensures that the goals of the organization are achieved.
Asset management ensures that all assets attached the firm are safe and in good custody. In the case, the assets of the clients need to be well taken care of since they can be lost either accidently or intentionally. For example, all the property held on trust on behalf of the client can fall in fraudulent hands. There is evident of lapse in keenness as indicated while hiring a person with unclear educational background that can jeopardize the client’s property. Keeping the information of the clients confidential is mandatory. All details must match each client’s property and other entitlements. The legal obligations of holding property on trust must be followed to the latter as failure may lead to huge losses to the clients. The overall goals of the firm need to be achieved at whatever cost.

What are the ethical responsibilities of senior managementtoward its clients?

The top management must ensure that all the property of the client does not get lost or be misused in whatever way. The clients trust the management that the details shall not be internally altered to divert the property to unauthorized people. On the same note, the petty cash shall be handled as per demand and well accounted for. Moreover, the client’s information needs to be held in total confidentiality. The top management therefore, is expected to offer protection of all the information, property, and profits accrued from investments and surrender the profits in truth.

Works cited

“Internal Control Concepts.” Accessed on February 20, 2015 from <http://www.shsu.edu/~aac_cwb/control1.htm>