Decker, T. (2014, Dec 18). Former Westerville PTA president sentenced for theft. The Columbus Dispatch. Retrieved from http://www.dispatch.com/content/stories/local/2014/12/17/former-pta-president-sentenced.html

Summary of the Article:

breakdown in internal control measures. The realization of such swindling of the organization’s assets led to an internal audit which revealed that, Robertson, the accused, had taken money belonging to the organization to a tune of

Statement of Preventing Internal Control Breakdown and the Lesson’s Learnt

From the above case study, it is evident that the organization in question took long to realize the breakdown in the internal control systems. According to the Committee of Sponsoring Organizations (COSO) (2011), an internal control system should be an ongoing process, driven An internal control system that considered ethical values, integrity and the method of assigning responsibilities would have prevented the breakdown. It is evident that Robertson lacked integrity. Also, the organization should have instituted measures for risk assessments. They would have anticipated the risk of trusting one person with the organization’s bank accounts. As it stands, the control activities of these organizations were very risky. For example, the procedure of withdrawing funds ought to have been such that more than two signatories would be involved. Additionally, prevention of such breakdowns needs an effective system of organizational communication and the flow of information, including system information. If such a system existed, the board would have noticed the fraudulent deeds in time. Ultimately, it is of importance to incorporate monitoring activities for the internal control systems, in order to ensure that any possible risk is detected and prevented.

The above case study has a detrimental lesson as I prepare for the job market. The main lesson the article presents regards the measures that the board and management of an organization should institute to prevent internal control breakdowns. As a stakeholder in such a situation, I would ensure that the due process of a comprehensive internal control system is followed

Reference

Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2011).Internal control integrated framework. Durham, NC: Author.