The Internal Control among Government and Firm's Staff in the Sultanate of Oman - Report Example

Download file to see previous pages The paper ''The Internal Control among Government and Firm's Staff in the Sultanate of Oman'' is a wonderful example of Management report. Mautz and Winjum (2008, p. 123) stipulate that internal controls play a huge role in the organizational structure and design of a company. COSO (2007) states that internal controls comprise of every measure that organizations take to a) safeguard their resources against inefficiency, fraud, and waste; b) ensure reliability and accuracy in operating and accounting data; c) secure conformity with the company’s policies and d) evaluate performance level in organizational units of a firm. Internal controls have five components namely monitoring, information and communication, control activities, risk assessment, and control environment. However, this paper will assess the awareness of internal controls amongst staff of government and firms operating in the Sultanate of Oman.

Monitoring

As indicated by Deloitte (2008, p. 3), internal control systems require monitoring- a practice that evaluates the system’s performance quality in due course. This is attained with continuous monitoring processes, different assessments, or both. Constant monitoring takes place throughout the operation. It entails usual management and managerial activities, and additional events employees understand how to perform their tasks.

Picket (2010, P. 258) posits that internal controls change with time such that their applications develop. Even efficient processes can one day become obsolete to fail to perform again. This is because of the introduction of other personnel, the changing efficiency of supervision and training, constraints in resources and time, as well as additional demands. Additionally, conditions through which the control systems are created may transform making them avoid the risks that may come with the innovative conditions. Therefore, it is important for management to decide whether in-house control systems constantly prevent and address pioneering risks.

In his study, Benison (2007, p. 134) found out that when managers are familiar with monitoring activities, they facilitate effective operation of the in-house control systems in their companies. The procedure entails evaluation by the right control operation and designing employees on an appropriate basis as well as the use of essential actions. This affects every activity inside a company as well as external contractors.

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