2-1 Activity: Internal Controls and Fraud Prevention

ACC 691 Module Two Activity Guidelines and Rubric

Scenario

You are an accounting manager for Maple Leaf, Inc., an organization that sells specialty teas. You are concerned because you’ve observed instances of internal control violations, such as employees with access to keys for locked areas allowing other employees to use those keys unsupervised. You have also noticed the petty cash box left unlocked and unattended on another employee’s desk. While these aren’t major violations, you want to make sure your employees understand the importance of a strong internal control environment. You decide to schedule a meeting with your employees to remind them of the purpose of internal control procedures to prevent fraud. To prepare for this meeting, you decide to create a meeting agenda with talking points.

The skills practiced in this assignment will help to support your work in Project One.

Directions

Using the template provided in the What to Submit section, create a meeting agenda with talking points that describes the importance of internal control objectives and how these objectives help prevent fraud.

Specifically, you must address the following rubric criteria:

1. Describe the missing elements of the organization’s internal control objectives.
2. Describe limitations of the ability of the organization’s internal controls to prevent all types of fraud.
3. Explain how the organization’s internal control objectives help prevent fraud.
4. Summarize the purpose and objectives of the organization’s internal controls