The document discusses 5 best internal controls for a company's financial processes. It describes each control, what it does, and how it prevents errors or fraudulent activities. The controls are: 1) reconciliation, 2) internal audit, 3) segregation of duties, 4) approval authority requirements, and 5) physical audits of assets. Determining if these controls are enforced helps assess risks and protects the company.

1. Assignment 4: Reporting to
Management
Ali David

2. Financial Condition of
Gemstar Productions

3. Balance Sheet
Current Ratio = 31.77
Working capital = 50,880.00
Debt to Assets = 63%
Return on assets = 7.3%
Return on equity = 19.5%

4. Profit and Loss Budget versus Actual Statement

5. Statement of cash flow

6. 5 best internal controls
1. Reconciliation
What it does? is the process of comparing
monthly transactions of your company’s
financial accounts with monthly statements
from the banks or financial institutions that
serve you to keep everything in check
(Roberge, 2012).
What it will prevent and how can I
determine it if it is being enforced: It
deletes accounting errors or mistakes. It is a
useful tool to perform it monthly to keep your
bookkeeping the same to what is recorded at
your bank or financial institution.

7. 2. Name: Internal Audit.
What it does: Is designed to
provide value and improve an
organization’s operation (Withum,
2015).
What it prevents and how
can I determine if it is being
enforced: Internal audits perform
tests of controls to verify whether
controls are working as designed.
They also assist management in
identifying areas or processes that
need attention. (Withum, 2015).

8. 3. Name: Segregation of duties
(SOD).
What it does: Assigning multiple
steps in a process to different people
to eliminate instances in which
someone could engage in theft or
other fraudulent activities by having
an immoderate amount of control
over a process (Bragg, 2018).
What it will prevent and how
can I determine it if it is being
enforced: It will prevent any fraud
or financial misstatement from the
people doing the key processes.

9. 4. Name: Approval Authority
Requirements.
What it does: Are control activities
that serve as fraud deterrents and enforce
segregation of duties (Minnesota
Management & Budget, 2010).
What it prevents and how I can
determine if it is being enforced: It
can prevent unscrupulous employees
from making significant fraudulent
transactions with company funds
(Minnesota Management & Budget,
2010).

10. 5. Name: Physical audits of
assets.
What it does: Physical audits
provide hand-counting cash and any
physical assets tracked in the
accounting system (Real Asset
Management, 2012).
What it prevents and how can I
determine if it is being enforced:
Physical audits will support you to
keep a better eye on your fixed assets
and their conditions. They will also
help you by being able to recognize
any alerts or misuses of assets (Real
Asset Management, 2012).

11. New skills and concepts on
accounting.
Critical thinking and
analysis
Time management
Communication and social
skills
What I learned from this experience

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