Management Report
Management Report
Internal Controls of the Wal-Mart
It is believed by the management of the Wal-Mart that it has accountability for setting up and sustaining of sufficient internal control over the financial reporting. The organization also intends to offer rational declaration concerning the consistency of financial reporting. The company is determined to organize financial reporting for the purpose of external reporting in compliance with those standards of accounting that are allowed in the United States (Wal-Mart, 2014).
The internal control of the company is effective because the company maintains disclosure controls and practices that are planned to offer rational declaration that data needed on time is gathered and communicated to the management without delay. Moreover, the effectiveness of the internal control can also be determined through its ethical standards that incorporate the system of open communication in the company. It reflects that company implements highest standards in the working place to ensure the pleasure of the employees. Another reason that signifies the value of company’s internal control is the policy of open door communication that assists the management to be conscious of daily issues in an effective way. The significant benefit of the open door communication is the confidence and courage of the stakeholders who feel motivated to report any concerning issues to the management immediately. In this context, the ethical standards maintained by the Wal-Mart explicit the effectiveness of its internal control (Gupta, 2012).
Changes Suggested in Internal Control
It is suggested that strict regulations in the company may result in the dissatisfaction and displeasure of the workers. The company is therefore required to introduce employee oriented strategies that can enhance the efficiency of the workers and subsequently boost the profitability of the company.
References
Gupta, P. (2012). Principles of Business Financial Accounting. Bloomington: AuthorHouse.
Wal-Mart. (2014). Annual Report. Bentonville: Wal-Mart.
