The Internal Control Environment Research Proposal

The Internal Control Environment - Research Proposal Example Risk assessment is the component which enables the management to assess and analyze the risk associated with the accomplishment of objectives (Biegelman para.12). As in TPC, the elements of risk assessment includes an analysis of all three divisions and realizing the sources which could probably lead to control failure. For this purpose, TPC must set an internal control objective and then figure out the causes which would lead to deviations from the objective. Risk assessment is the component which enables the management to assess and analyze the risk associated with the accomplishment of objectives (Biegelman para.12). As in TPC, the elements of risk assessment includes an analysis of all three divisions and realizing the sources which could probably lead to control failure. For this purpose, TPC must set an internal control objective and then figure out the causes which would lead to deviations from the objective. The third component includes control activities or policies to create and implement strategies throughout the organization that ensures that objectives of internal control and minimization of risk would be achieved (Biegelman para.12). The major elements of this component are verification, performance reviews and separation of responsibilities etc. At TPC, this component involves implementing strategies and policies at headquarter as well as the three separate divisions. These policies might include a thorough system of performance measurement as well as control procedures (Committee of Sponsoring Organizations). The fourth component of internal control refers to management information and communication which entails communicating with employees on the internal control objectives as well as procedures and to instigate their efforts in meeting the goals (Biegelman para.12). TPC needs to enhance communication and information system among all the three divisions so as to ensure that the objective is communicated all over the organization.   The fifth and last component of internal control refers to monitoring which involves overseeing the whole internal control process and procedure to know if the process is carried out as planned and proceeding towards the desired objectives. The TPC’s management, as well as independent auditors, could keep a check over the proceeding of the control procedure in the organization and achievement of internal control objectives (Biegelman para.12).  Ã‚  Ã‚  

Corparate finance Essay Example | Topics and Well Written Essays - 2750 words

Corparate finance - Essay Example One of the most significant challenges that most SMEs have faced regardless of their country of origin is the problem of access to financing for their operations as well as for their growth and development. Studies reveal that most SMES are characterized by very tight budgets and liquidity constraints and are therefore constantly in search of new sources of financing (Jiang, Li & Lin, 2014). According to Abereijo and Fayomi (2005), the generation of entrepreneurial ideas is not normally a difficult challenge for most people, however, the generation or availability of funds to translate the idea into a running business is another. A lot of ideas have that were considered excellent and innovative have been known to die simply due to the fact that the entrepreneurs who came up with them lacked funds to translate them to businesses and also due to the fact that financial institutions could not agree to invest in them. It is therefore important to note that finance from whichever source, is critical for the growth and development of SMEs and in order to maximize the profits realized from the business. Given the nature of SMEs as shown above, there is therefore critical need for the financing of their activities mostly from external sources of finance (Briozzo, 2012). It has been suggested that on a general scope, SMEs normally have four main financing requirements: these are the initial investments on infrastructure, the operational costs which are sometimes required in lump sum amount, growth and expansion, and finally, unexpected opportunities that arise during the course of operations requiring a quick access to finances. It is however noted that despite the glaring need for finances, most SMEs often choose to use internal sources of finances for example from the entrepreneurs own funds or from the cash flows from operations instead of choosing external sources of finance. This choice is normally determined by the relative