Analysis of Fixed Asset Internal Control: Case X
Mäkinen, Miina (2021)
Mäkinen, Miina
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021121726625
https://urn.fi/URN:NBN:fi:amk-2021121726625
Tiivistelmä
Few corporate collapses at the beginning of the 21st century instigated a demand for updated internal control systems. Since then, internal controls have been developed further to meet the requirements of different organizations to protect them from fraud and misconduct. Legislation regarding internal controls was reformed after the bankruptcies that followed the large fraud cases in the early 2000s. Many companies are
nowadays required to have internal control systems protecting their financial statements, assets, and operations. Executives in the case company X felt the need to develop a complete internal control system to protect their growing business. The purpose of this thesis was to analyze the selected fixed asset internal controls for deficiencies. Additionally, the thesis aimed to provide improvement suggestions for identified deficiencies and broad information about internal controls to the case company.
From these settings, the following research questions were formulated: What are the characteristics of an effective internal control system? Are the case company’s fixed asset internal controls as comprehensive as they can be? Are there any areas in the case company’s fixed asset internal controls that require improvement? These questions were answered by evaluating the controls with three different methods: framework
analysis, assertion analysis, and common control comparison analysis. The results of the research were assessed utilizing thematic analysis methods. The research utilized qualitative data in the form of observation, an interview, primary data, and secondary data.
The results found a few deficiencies in the fixed asset internal control system. The deficiencies were assessed and divided into five main themes: responsibility, communication, workforce, asset recording, and asset management deficiencies. The thesis found the fixed asset internal controls of the case company primarily appropriate.
nowadays required to have internal control systems protecting their financial statements, assets, and operations. Executives in the case company X felt the need to develop a complete internal control system to protect their growing business. The purpose of this thesis was to analyze the selected fixed asset internal controls for deficiencies. Additionally, the thesis aimed to provide improvement suggestions for identified deficiencies and broad information about internal controls to the case company.
From these settings, the following research questions were formulated: What are the characteristics of an effective internal control system? Are the case company’s fixed asset internal controls as comprehensive as they can be? Are there any areas in the case company’s fixed asset internal controls that require improvement? These questions were answered by evaluating the controls with three different methods: framework
analysis, assertion analysis, and common control comparison analysis. The results of the research were assessed utilizing thematic analysis methods. The research utilized qualitative data in the form of observation, an interview, primary data, and secondary data.
The results found a few deficiencies in the fixed asset internal control system. The deficiencies were assessed and divided into five main themes: responsibility, communication, workforce, asset recording, and asset management deficiencies. The thesis found the fixed asset internal controls of the case company primarily appropriate.