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Finance & Accounting
Pages 3 (753 words)
Case Study: Toy Central Corporation (Name) (Tutor’s Name) (Date) Case Study: Toy Central Corporation Internal Control over the financial reporting is considered to be the process that maintains a reasonable rationale with regard to the reliability of financial reporting in a company.
People with variety of roles, such as those who formulate and implement policies and those monitor systems are accountable for the success or failure of the process. The findings from interim audit procedures conducted in July and August 2007 reveals that the controls over the purchase and payments systems are managed efficiently. However, the delayed production to satisfy the enormous demand during 2006 holiday selling season had also created a lag in the smooth running of the business. Though a fair quantity of this product was sold out for Valentine’s Day 2007, rest of them was returned to TCC for a full refund. This created an adverse situation within the firm in managing the inventory. But it does not sound nice to go into the holiday season selling with the same stock again. This control issues must be looked into by the management. The physical environment in which companies conduct their business continues to change dramatically, and it requires the firms to make changes in their policies. Economic factors, advances in technology, and increasing global competition are some of the elements that force the management into greater challenges to control and manage liquidity while increasing sales (Preparing for internal control reporting, 2002). ...
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