One should not regard the computer processing of accounting records as an incidental activity that does not affect the internal control function. In fact, the ability to process accounting information electronically makes it easier for organizational personnel to avoid internal controls (Chapman 25). It is important to remember that, while an organization establishes internal control procedures for each operation wherein assets are at risk, the several sets of internal control procedures are a part of the larger organizational system of internal controls. Thus, the integrated functioning of internal controls for cash transactions, materials acquisition, vendor payments, inventory management, and the myriad other assets protection functions in an organization creates a unified whole for the protection of an organization's assets or assets controlled by an organization (Heiman-Hoffman, Morgan, and Patton 75-77). The following internal control policy of the Halliburton Company illustrates a comprehensive organizational system of internal controls. Chapman, C. "Just Wired About Software." Internal Auditor 52 (August 1995): 24-35. Police organizations, such as the NYPD, handle cash in several different contexts. Two examples are (1) cash as evidence and (2) cash transactions involving police auctions. The NYPD conducts auctions of surplus equipment, unclaimed property, and seized property (Comptroller, City of New York 14). Responsibility. The implementation and maintenance of internal accounting controls, procedures and records that are adequate in all respects to satisfy the requirements of this Corporate Policy will be the primary responsibility of the Chief Financial Officer. Internal controls are all those necessary or useful tools for addressing, managing and checking activities in the company; they aim at ensuring respect of corporate laws and procedures, protecting corporate assets, efficiently managing operations and providing precise and compl |
