Sunshine Center. Accounting, Finance, SPSS Case Study

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The Sunshine Center
The Sunshine Day Care Centre is a small non-profit organization. Managers and auditors alike are often faced with increased responsibilities in evaluating internal control and assessing the risk of fraud. According to COSO (the Committee of Sponsoring Organizations of the Treadway Commission), internal control is a process designed to provide rational assurance of objectives in different categories such as financial reporting reliability, operational efficiency, and effectiveness as relevant laws and regulations compliance. The following is an analysis of the Sunshine Center’s case by applying the COSO model's five components.
Control Environment
The sunshine center is under the church's control and managed by Barb, who does not have prior expertise in management, teaching, or childcare provision. A two-person was formed following the resignation of the first committee. The new team comprises Sarah, serving as the chair, Olivia as the secretary, and Rev. Andrew as an Ex-official member. The fact that Barb is handling all the organizational duties alone indicates that the Sunshine Center lacks a clear organizational structure. She is responsible for financial management and human resource responsibilities, which minimizes the management's efficiency and effectiveness. Barb, The church's administrative board, the committee, and Rev. Andrew have all failed to act with honesty and integrity.
Control Activities
The development of policies to govern funds management in an organization depends on com...