Controls and Reportings

timer Asked: Apr 26th, 2017
account_balance_wallet $40

Question Description

** 2 to 3 page word document and an excel spreadsheet **

Assume that you applied for a position in UPC’s internal audit department after 5 years in the finance department. As a senior internal auditor, one of your assignments is to design and implement controls over capital budgets and review control effectiveness. Your company is required by the Sarbanes Oxley Act of 2002 (SOX) to report material weaknesses in internal controls.

You created the attached spreadsheet to verify the growth rate used in calculating cost of capital. You identified many inconsistencies with the data used by the finance department. The discrepancies led to a higher cost of capital for the truck replacement project. Therefore, UPC decided to lease trucks instead. Further, you are aware that the finance director is the one who approves capital projects and makes procurement and leasing decisions. The finance director owns a truck leasing company, and proposals have been received from his leasing company.

You have been instructed to respond to the following tasks:

  • Identify and explain 5 or more audit objectives for UPC’s capital plans.
  • Provide a report of your audit, and discuss any SOX reportable issues.
  • Recommend internal controls to address identified and perceived control weakness in UPC capital plans.
  • Some managers have complained that the process of accepting projects does not consider qualitative factors. What qualitative factors will you recommend? Are there any associated risks?

Tutor Answer

School: UT Austin

Good luck in your study and if you need any further help in your assignments, please let me knowCan you please confirm if you have received the work? Once again, thanks for allowing me to help youRMESSAGE TO STUDYPOOL NO OUTLINE IS NEEDED AS IT IS AN ANALYSIS


Control and Reporting- Accounting;


1. Internal controls are the system in the company that shows the effectiveness running the
operation and sound financial reporting. As an auditor, setting objectives is the obligation so
as to use it when evaluating a company (Burnaby, & Hass, 2011). These standards should be
meant by the company to ensure the smooth and effective running of the activities. They

Proper examine of the financial statement given by the company so as to validate the
accuracy of financial data.


Capital panning-this should be evaluated in terms of receiving or discarding projects,
their financial means and how they are reported and accomplished.


Evaluation of policies and regulations- This should be done most likely to those
concerning capital projects to make sure that they match to the goals for the
progressions of the company.


Accurate control should be in place for the discarding of capital assets like vehicles,


Evaluate the allocation of funds and projects- This will enable the auditor to be
assured of the amount proposal for each project and proper use of funds for the
advancement of capital projects

2. Report on the financial statement
The audition of the associated consolidated financial statement of UPC holdings has been made
containing documents and other related consolidated statements of operations, comprehensive
loss and owner’s deficit.
Management‘s responsibility for the financial statement.
Management is responsible for the preparation and presentation of these financial statements
with the accord to of United States generally agreed accounting principles which consist of
implementation and maintenance of internal control applicable to the preparation and just

performance of consolidated financial statement that are unrestricted from the misstatement of
the material whether due to fraud or error.
Auditors’ responsibility
It is the duty of the auditor to expres...

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