Circumventing internal controls

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Circumventing Internal Controls
Internal controls are processes designed to provide realistic reassurance concerning the achievement of a company objective related to reporting, operations, and compliance. An internal control that a coworker might attempt to circumvent to steal money is the establishment of responsibility. This involves identifying certain employees and granting them access to specific tasks. An employee might want to skip a particular job and still expect to get paid. An organization can prevent such theft by assigning access codes to specific employees to monitor their task or transactions. Another internal control a coworker might attempt to circumvent is misrepresenting records of cash receipts and petty cash receipts. The best way of preventing such fraud is having adequate segregation of duties in all significant accounting process to make sure multiple employees are responsible for authorizing and reconciling transactions as well as reviewing the financial statements regularly (Krishnan, 655).
Work Cited
Krishnan, Jayanthi. “Audit committee quality and internal control: An empirical analysis.” The accounting review 80.2 (2005): 649-675.