Sample Ethics Paper on Internal Control Article by Jackson

Jackson’s article “There Is No Shortcut to Good Controls” outlines that internal control helps entities to sustain and improve their performance and achieve their objectives. The article asserts that COSO’s Internal Control and Integrated Framework help organizations to reduce risks to levels that are at least acceptable and embrace efficient internal control systems capable of adapting to today’s changing business and operating environments. Additionally, developing, implementing, and operating an effective and efficient system is challenging as it has to adapt to the rapidly changing business environments. The challenges include greater use and advancements in technology and increasing regulatory requirements and scrutiny across the globe. According to the article, effective internal control systems require serious adherence to policies and procedures in place with the aim of enhancing the use of judgment. Entities, boards, and management judge how much control is enough for a given internal system and integrated framework. The integrated framework largely helps corporations’ boards of directors and management in their respective duties regarding internal control without exceeding the limits of their responsibilities. Moreover, it provides a principles-based approach that enables management and board of directors to use judgement to design, implement, and conduct internal controls. Also, it provides a means to identify and analyze risks, and develop responses to manage the risks to appropriate or acceptable levels. Jackson’s article and the book by Mintz & Morris (2008),Ethical Obligations and Decision Making in Accounting, agree that internal control is significant to organizations and businesses to organize financial and management information and separate the duties of employees.

Jackson’s article and Mintz and Morris’ book contrast since the authors convey different perspectives of internal control. Jackson’s article offers an overview of the importance of internal control systems and integrated frameworks and mentions that effective and efficient internal control systems help entities to achieve their objectives and sustain and improve their performance. It also outlines that the integrated framework is essential within an entity as it provides the management and board of directors with principles-based approaches (Jackson, 2005). These approaches help the management to take internal control of an organization or entity effectively. Moreover, the integrated framework assists the management and board of directors in identifying and analyzing risks and developing effective responses to manage the risks into acceptable levels. In contrast, on the other hand, Mintz and Morris’s book explores the importance of ethics and its pillars in the accounting profession. The authors argue that the field of ethics involves developing and recommending concepts of right and wrong behaviors. It further outlines the six pillars of character, including respect, trustworthiness, fairness, citizenship, caring, and trustworthiness, and how important they are in maintaining an effective internal control within organizations. The book also presents an integrated framework of how individuals in the accounting professions are expected to behave or conduct themselves while rendering professional services to customers. Mintz & Morris (2008) mention that the AICPA Code of Professional Conduct has established general standards for auditor’s integrity, objectivity, competence, confidentiality, and independence.

Jackson’s article gives an example of a larger issue currently underway in the accounting profession. The article argues that corporations should integrate effective internal control systems to help them achieve their objectives. As such, the information conveyed by the article relates to the general standards of the AICPA code of professional conduct. Auditors are required to undertake professional services with professional competence to achieve the organizational objectives. The concept implies that an auditor needs to have the necessary competence, level of knowledge, and understanding to render professional services. Moreover, the code dictates that auditors to exercise in dues care so as to improve both the competence and quality of professional services offered. Thus, these professionals are mandated to offer services in line with their capabilities and show consistency when it comes to perming accounting-related responsibilities. Furthermore, the code of professional conduct requires auditors to adequately plan and supervise the performance of professional services rendered by a given firm. One of the primary objectives of the standard is ensuring that auditors offer services that take into account customers’ confidentiality and honesty on the part of the auditors (Mintz & Morris, 2008). The standard ensures that auditors are not in subordination of the trust of customers for their selfish gains and advantages.

Jackson’s article is reliable because it consistently outlines the importance of internal control systems and integrated frameworks to entities and organizations. The author asserts that internal control systems and integrated frameworks ensure that organizations can mitigate risks to acceptable levels and adapt systems that can adapt to the rapidly changing business and operations management (Jackson, 2005). This assertion relates to the general standards outlined by the AICPA code of professional conduct, as identified by Mintz and Morris (2008). Lastly, individuals in the accounting profession are required to act with competence, integrity, respect, and honesty in rendering professional services to the customers.

I foresee that the follow-up article topics are going to critique internal control effectively, unlike Jackson’s article. Jackson’s article seeks to outline the significance of adopting internal control systems and integrating frameworks within an organizational setting. The article precisely critiques the significance of adopting an internal control system, and it argues that the system helps entities to maintain and sustain their business performance and achieve their objectives. Moreover, the article posits that integrating frameworks within a business certainly aligns the staff’s responsibilities, hence ensures that work flows smoothly. As such, the article provides a detailed checklist that can enable individuals undertaking follow-up activities and subsequent inquiries to benefit from the information conveyed. The article also critiques the benefits and advantages of the internal controls system, such as mitigating risks to acceptable levels, thus enables learners or those inquiring about the article to understand or gain knowledge about internal controls. As such, I feel that the follow-up article topics will have gathered sufficient and detailed data to critique more about internal control within organizations. They will largely expound on the importance of adopting internal control systems and integrating frameworks within organizations. Moreover, Jackson’s article does not provide strategies on how to mitigate risks. As such, the follow-up article topics certainly will provide more efficient strategies to solve certain challenges that may be encountered as a result of internal control system risks. This will enable readers of the follow-up article topics to gain efficient understanding and knowledge on how to mitigate such risks to acceptable levels.

I agree with Jackson’s article’s assertions. For an entity to effectively and efficiently adapt to the ever-changing business and operation environments, it needs to adopt effective internal control systems and integrate frameworks in the daily activities. The article argues that integrating framework into organizational activities largely help to control the way auditors behave at their workplaces. Auditors are required to maintain competence, integrity, honesty, objectivity, among others, in the organizational practices. As such, the system enables entities or organizations to improve their productivity and meet their objectives. Moreover, effective internal control systems allow firms to mitigate risks to acceptable levels. Integrating frameworks within an organization guides the staff as it outlines their responsibilities as well as the limits of their roles, which helps to maintain an ethical business operation as outlined by the AICPA professional code of conduct mission. The AICPA professional code of conduct mandates auditors to render professional services to clients with integrity and objectivity. Auditors are also required by the code of conduct to ethically behave within the organizational to ensure there is effective communication and work flow at all levels of departments.

References

Jackson, R. A. (2005). Larry E. Rittenberg, Ph.D., CIA, CPA: There Is No Shortcut to Good Controls; COSO’s New Chairman Says Every Corporation Needs Muscular Internal Controls and Audit Executives with the Authority to Enforce Them. Internal Auditor62(4), 62-67. Retrieved from https://go.galegroup.com/ps/anonymous?id=GALE%7CA135415650&sid=googleScholar&v=2.1&it=r&linkaccess=abs&issn=00205745&p=AONE&sw=w

Mintz, S. M., & Morris, R. E. (2008). Ethical Obligations and Decision Making in Accounting. Boston, et al.: McGraw-Hill Irwin, 56-57. Retrieved from https://pdfs.semanticscholar.org/316e/ce24b27c3ca41de400c1e3bb46f208acbb0a.pdf