Recommendation of Internal Control for Purchases, Payables and Essay

Recommendation of Internal Control for Purchases, Payables and Payments - Essay Example There also remains the question of assessing the adequacy of the policies and procedures, and determine whether these are being implemented, working efficiently and being monitored effectively. The paper will further discuss the strengths and weaknesses in the internal control system of purchases, payables and payments. Management is responsible to ensure that proper internal controls are being exercised and being operated as intended. We believe that this information will alert to possible weaknesses in our organization and enable the management to initiate appropriate actions to address the concerns. The text book defines internal auditing as an independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization to accomplish its objectives by evolving a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.   The internal audit activity evaluates the adequacy and effectiveness of controls that encompass the organizations governance, operations, and information systems. Internal audit reviews include the reliability and integrity of financial and operational information, effectiveness and efficiency of operations, safeguarding of assets, and compliance with laws, regulations, and contracts. These reviews also ascertain the extent to which operating and program goals and objectives have been established and whether they conform to the requirements of the organization. Besides, it also examines the extent to which results are consistent with established goals and objectives and whether operations and programs are being implemented or performed as intended.   This paper will also strive to help in improving the functions of internal controls in purchase, payable and payment first by describing the existing

Southwest Airlines Case Study Example | Topics and Well Written Essays - 500 words - 2

Southwest Airlines - Case Study Example In addition, the company viewed offering the air service as an innovative and environmentally responsible industry driving at economic and social progress (Rochat, 2007). The fun campaign led by Keller and involving crews and all employees was an innovative way of making their flights a fun to all customers. Another factor behind the success was the cost cutting strategies which included contracting fleet maintenance and fuel supplies, fewer than average operators and crews in all its services, and the no frill policy was a different approach that ensured the company minimized its costs. Morrison (2001) elaborates how the low cost Carriers had to adopt some of the strategies used by Southwest to cut costs. Making employees as part of a larger family of Southwestern Airlines was perhaps the largest asset that the company utilized to succeed in the market. Brueckner, Lee & Singer (2012) elaborate one of the main characteristics of LCC as cutting costs while still charging very low fares compared to major airlines. The 10 to 15 turnaround therefore ensured Southwestern airline maximum usage of its fleet while carrying a below average or average number of customers per trip. In addition, the high turnaround ensured the business class customers could effectively use the company due to reliability, speed and effectiveness of reaching these destinations, including the ability to acquire a ticket in the airline’s gates and board the next flight to their destination. The high turnaround therefore translated to more customers due to reliability, and effectively utilizing the fleet, which increased the company’s profits. One of the challenges faced is flooding of other low cost carriers in the market with better services, the threat of terrorism rapidly increasing in air transportation making the turnaround required difficult to maintain, and rising fuel costs that may increase its operating costs in addition to the tantrums in global economy. According to