Evaluating accounting control systems Essay Example | Topics and Well Written Essays - 1000 words

Evaluating accounting control systems - Essay Example The meaning of internal control has changed over the recent years with the development of various internal control models. The COCO model is one of those models. Stone Creek Church in Urbana, Illinois has adopted the COCO framework model for their Internal accounting control system. The Coco model, which builds on COSO (another internal account control model) is the most user-friendly and concrete method. â€Å"The COSO framework is the reference model, which is written from the point of view that basically it makes the organizational member of the internal control be thorough who includes the manager from the standpoint of the shareholder† (COSO Framework Para 10).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The COSO framework describes internal control as a procedure, influenced by an entity’s management, board of directors and other workers, which is planned to provide reasonable assurance concerning the attainment of objectives. As stated the earlier Stone Creek Church in Urbana, Illin ois has used the COCO framework model. The Stone Creek Church in Urbana always has to in excess of two persons to handle the cash. The money is never in one person’s situation anytime for protection. ... And it protects the person and the structure. The Stone Creek Church in Urbana provides cash dispersement process. It means payment or Cash outflow of money to resolve commitments for instance interest payments for loans, operating expenses and accounts receivables throughout a particular period so as to carry out business actions. Usually in the form of plastic money, cash, check, Electronic fund transfers and warrants. CoCo model distinguishes four interconnected elements of internal control such as containing purpose, commitment, capability and learning and monitoring. An industry that performs a task is directed by an understanding of the function of the task and supported by ability. To execute the task well over time, the industry wants a sense of commitment. At last, the industry has to monitor task performance to develop the task process. These fundamentals of control, which contain twenty particular control criteria, are seen as the steps an industry takes to promote the rig ht action. As mentioned earlier Stone Creek Church in Urbana, Illinois has adopted the COCO framework model. The task was to evaluate the accounting control systems of Stone Creek Church in Urbana, Illinois on the basis of the interview of the Stone Creek manager and the attached notes on COCO framework. The Coco framework states that the organizations should be able to measure their performance in quantitative terms and should use budgets and financial statements to evaluate their performance. The Coco framework also advocates the use of qualitative measures such as target setting in order to assist the performance of a firm. In the Stone Creek Church case no quantitative measures like the setting up of budgets has been done as well as no qualitative measures like

Competitive Environment Case Study Example | Topics and Well Written Essays - 3750 words

Competitive Environment - Case Study Example Most companies have faced domestic competition and done well in the limited competitive milieu that they have been operating in. But now all companies will face competition from companies all over the world. Governments will be unwilling to protect domestic companies because they have realized that they will be doing a great disservice to their economies and people by limiting competition in their countries. Most governments are going overboard in making their countries attractive destinations for foreign capital, technologies and companies. The game is clear. Only the best companies will survive (Adler et al, 1993). The nationalities of companies will not matter and country markets will become intensely competitive. There will be another type of competition which is more difficult to contend with because it comes from unexpected quarters. New technologies are pouring out of laboratories and development centers. These new technologies do not respect the boundaries of existing busines ses. They solve customers' existing and even unarticulated needs in fresh ways. Customers lap up the products and services made with these technologies because they are decidedly better than the products and services they are using. ... In that sense video-conferencing is a direct threat to air travel and hotel industries. Companies need to keep a track of development of technologies in varied areas, because there is no way to find out which one of them is going to hit them. To explain Toyota's competitive advantages, much focus has been on Toyota's Just-in-Time tools such as kanban-card paced pull systems, frequent, small batch production and delivery, and reduced inventories. For instance, Hopp and Spearman (2000) have contrasted ConWIP and kanban control of production flows. Deleersnyder et al (1989) and Lee (1989) have compared the relative efficacy of push and pull approaches for production. Customers' needs are changing because their economic status and their views about themselves and the world are changing. Customers are reinventing themselves more frequently these days and hence their whole being and their rationale of existence is changing (Cusumano, 1989). This reflects in the products and services they buy and their motivations in buying those products and services also change. They want their needs to be served differently, and in most cases by different providers. A family used to go on a holiday once in a while for a change. It essentially used to be a meaningless outing. But now a family will go on a holiday with the avowed purpose of recuperating and energizing. Certain activities have to be part of this holiday. There has to be yoga sessions, mountain climbing, bonfires, etc. The holiday planner that served the family will have to reinvent his business or there will be another provider waiting to grab his client. Companies has to keep track of its customers'