Knottyville Country Club

Accounting
Tutor: None Selected Time limit: 1 Day

In regards to the Knottyville Country Club: Asset Misappropriation Case Study

List in detail the various internal control and weaknesses and weaknesses in the monitoring system that existed at the Knottyville Country Club.

Jul 6th, 2015

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· Inadequate design of internal control over the preparation of the financial statements being audited. · Inadequate design of internal control over a significant account or process.

 · Inadequate documentation of the components of internal control. · Insufficient control consciousness within the organization, for example, the tone at  the top and the control environment. 

· Absent or inadequate segregation of duties within a significant account or process. 

· Absent or inadequate controls over the safeguarding of assets (this applies to controls that the auditor determines would be necessary for effective internal control over  financial reporting). 

· Inadequate design of information technology (IT) general and application controls that prevent the information system from providing complete and accurate  information consistent with financial reporting objectives and current needs.

 · Employees or management who lack the qualifications and training to fulfill their assigned functions. For example, in an entity that prepares financial statements in  accordance with generally accepted accounting principles, the person responsible for the accounting and reporting function lacks the skills and knowledge to apply  generally accepted accounting principles in recording the entity’s financial  transactions or preparing its financial statements.

 · Inadequate design of monitoring controls used to assess the design and operating  effectiveness of the entity’s internal control over time.

 · The absence of an internal process to report deficiencies in internal control to  management on a timely basis. 

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 6th, 2015

Thank you so much! Do you have anywhere I can reference this information because I need help with the whole Case Study?

Jul 6th, 2015

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Jul 6th, 2015
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