The chapter seeks to explore the entire subject of internal control of organizations. In doing this it arranges the subject in broad sub topics and provides a full illustrative description of the sub topics and the roles they play in the internal control of organizations especially in organizations that exist to make profits. Some of the key topics include:
(i) Selling of man hours
Most of accounting firms largely rely on their man power proficiency to offer their services. They hire professional accountants then look for contracts in firms both private and government institutions in which they carry out auditing and this completes their jobs. In such like firms, the chapter calls for effective management of the work force with proper provision of incentives as the employees would as well quit their jobs and start their own private audit firms (Jeffery, 322).
(ii) Risk exposure
In every business venture there exists a number of risks and whichever field of operation a business is in; presents unique risks. The chapter therefore calls for tailor made risk management strategies for every single business. It argues that there can never be one conventional way of managing risks (Jeffery, 335)
a) Discuss the types of risks that an accounting firm stands to face in a market of your choosing.
b) Discuss the advantages of segregation of duties in a firm and what factors would necessitate this.
Work cited
Jeffery, F. B. Introduction to Business Law 3rd Edition. Boston: Boston University press.
2001 print
