Jim Boree, owner of Boree's Bushings and Things has enlisted your help as his business manager to educate the rest of his employees on internal controls within the company. However, before you can do so, you must first educate them on what internal controls are.

MEMO

To:Boree'sBushings and thingsstaff members

From: Chelsey Wynn, business manager

Date: January 29, 2020

Subject: Internal Control

There are five main aspects in an internal control system including control environment, risk assessment, control activities, information and communication, and monitoring. Control environment means that directors and managers should have ethical leadership with good attitudes and awareness of the importance in the internal control system, influencing the employees of an organization to do the same. Risk assessment is an ongoing process which identifies and analyzes risk to prevent risks. Control activities are a set of policies and procedures to reduce the potential for errors or fraud. These policy's and procedures include employment of competent employees, separationof duties, mandatoryvaccinations, restricted access, security measures, proper authorization, ad adequatedocuments. Lastly monitoring is a system which evaluates weaknesses in the system. It is important to have the internal control system because it helps an organization safeguard assets, operate efficiently, ensures proper reporting of financial information, and ensures compliance with laws and regulations.

Response to the memo regarding either their past experience with internal control measures, or to ask probing questions regarding their memo to Jim Boree's staff describing internal controls.