Annual Report on Internal Controls

Annual Report on Internal Controls
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Ace Hardware Corporation Annual Report on Internal Controls
The annual reports of a company are often audited with the aim of determining the strength or weakness of the internal controls that have been put in place. This helps decide whether the users of the financial statements can rely on them or not. The auditor's opinion and management letter provide information as to the reliability and accuracy of the financial statements (Louwers et al., 2015). This helps show the users whether or not they can rely on the statements or not. In this report, the focus is on the financial reports of Ace Hardware Corporation.
Company Background
Ace Hardware Corporation was established with the mission of being a total retail support company, which would provide its clients with quality merchandise and services at an affordable cost. The company has managed to attain this over through the help of a strong team of directors. The team is made up of dealer-owners and non-Ace dealer director who is in charge of establishing guidelines that are followed by Ace employees (Ace Hardware Corporation, 2017).
The firm is American Hardware Corporation that is based in Oak Brook, Illinois USA. It is currently the world's largest hardware retail cooperative and the largest non-grocery retail cooperative. This has made it stand out among the firms listed in SEC. The cooperation buys and promotes products for over 5000 local hardware, lumber stores. And home centers, which are spread out across sixty-five countries. Many factors are responsible for its success, one being the corporation's emphasis on the use of modern retailing and service approaches. This has helped the corporation outdo most of the competitors in the industry. The corporation manufactures some of the products its retails such as paints and distributes other products under the Ace brand (Ace Hardware Corporation, 2017).
Internal Controls
Internal controls are the rules, procedures, and mechanisms, which are implemented by a company ...