Summary of the organization and its information system

Summary of the organization and its information system

Our organization is hierarchical, specialized, and impartial. We have explicit routines and policies that guide our operations for maximum efficiency. Our organization uses an electric management information system. The organization has a manual that contains all our policies and procedures that serves as a guide to achieving all our visions in a centralized manner. The electronic management system helps us to store, manage, and track the organization manual and for easy updates of records. The electric management system aids in automating office tasks. The electric information system is used to monitor changes made to the official documents in various stages of authorization and acquiescence. Since our organization has policies and procedures, the system allows for easy internal and external auditing. The information from the electric management system is often used by the managers to make critical decisions at the operational level. Besides, the electric management system increases the productivity and efficiency of the office work by automating simple tasks. Most office tasks become faster, process-driven, and all basic level data are digitalized and stored for future reference. In the case of default of the electric management of files, there is a backup from physical references.

Internal control

The principles of internal control are the conceptualizations that require the organization to set procedures in place to ensure that the company assets are protected. They are used to establish ways in which a company’s assets can be protected (Eisenberg, 1997). Our organization has an outlined procedure and actions that ensure all employees comply with our policies and federal law, performance evaluation of all workers and accuracy, and reliable operation of data and accounting reports.

Internal control principles

1. Segregation of duties. Our organization requires that all employees are responsible for safeguarding an asset and must maintain the accounting records of the assets they are responsible. Besides, employees share responsibility for easy checks of other employees.
2. Assignment of specific duties to each employee. This acts as a check and easy identification of problems if they occur.
3. Rotational employee job assignments. This prevents employees from overstaying in one job that may make them steal from our organization.
4. Use of mechanical devices. Our organization uses mechanical devices such as cash registers and time clocks to help us in protecting our assets.
5. We use serial numbers to safeguard absolute and accurate accounting records.

Auditing environment, process, and tests

The environmental audit helps our organization to evaluate and identify the environmental compliance and management system. It helps users to determine the performance of environmental management systems and equipment (Power, 1997). Besides, it helps us to minimize the exposure and risks associated with environmental health and safety, those results from human exposure.

Outline audit procedures

1. The environmental auditing process begins when our organization details a proposal for the environmental audit and decides on the mode in which it will be conducted.
2. Choosing an audit team. After planning, our organization chooses an audit team that comprises of seven members that will do the audit. The audit team is mandated to choose the appropriate procedures.
3. Collection of data. The team then proceeds to the environmental site and do an inspection and comes out with the data.
4. Analyzing the results of the audit. The results are then presented to the management to analyze and come up with the overall direction that the organization will take.
5. Evaluating the audit. The organization evaluates compliance with regulations to the criteria formed by the audit team.

Fraud detection process

Our organization has the following spelled-out procedures to identify fraud.

1. Identification of fraud symptoms. The first step is to understand the symptoms of such frauds, the nature in which they appear in the organization’s books and records. We consider the address and payment procedures of the fraudster.
2. Building a detection process. After identifying the symptoms of fraud, our organization recruits employees from different departments to help in detecting the fraudster.

• The internal audit performs computer audit techniques to match employees’ accounts.
• Accounts payables reviews all checks are done without a purchase order
• We call upon external editors to test non-standard ledger accounts.
• Extensive reviews of all payments in the organization

References

Eisenberg, M. A. (1997). The board of directors and internal control. Cardozo L. Rev., 19, 237.

Power, M. (1997). Expertise and the construction of relevance: accountants and environmental audit. Accounting, organizations and society, 22(2), 123-146