Control Activities

Third, control activities are actions taken to identify, prevent and minimize risk. The

researcher asked the question as to whether the control activities are implemented or not in the

cooperative. Based on the interviews conducted, the control activities are implemented because

according to respondents, the management is still able to control all the activities of the

cooperative as they will inform immediately all members, employees and stockholders regarding

all new policies and procedures of activities of the cooperative.

Golden Group Cooperative control its activities by informing, guiding and leading its

members about the procedures in making their shares grow. You will not become a member of

cooperative if you have not attended the seminar. When the accountants reconcile the balance of

each branch, they give the file to each representative of branch to continue there the encoding of

receipts. The following are the cooperative’s way of implementing control activities by type:

Table 1: The cooperative’s way of implementing control activities by type

Supervision The employees of the cooperative have different tasks in

accordance with their respective area.

Performance reviews If there is any problem on the first stage of recording transactions,

the junior accountants are the one correcting it.

Verifications The cooperative’s head accountant will perform the last duty

regarding the financial statements

Authorization The responsibility of Board of Directors who have the power to

approve the transaction

Segregations Duties Division of work is applicable to them, each accountant was

assign to specific branch in checking, recording and balancing

transactions. The cooperative brief employees regarding the task

 they need to do before they start work
Documentations All documentations is complete and recorded timely

As per control activities are the policies and procedures put into place to run operations,

accomplish goals, and prevent fraud, these are the basic internal control methods in control

activities aspect:

Establish responsibility:

 Golden Group Gabay Puhunan Brother Cooperative assigns each task to only one person.

Thus, the cooperative do not make one employee responsible for all parts of a process.

 They establish organizational structure.

 They implement separation of duties by department, and in each department, by assigned

work.

Restrict Access:

 The Gabay Group Puhunan Brother Cooperative do not provide access to systems,

information, assets, etc., unless needed, to others which are not responsible for inputting

data on that specific area.

Thus, as what was said in the later, the cooperative is following the standard of internal

control, (2.4.1), saying that, the accounts receivable records should be maintained b an

individual who does not have access to billing documentation or cash remittances.

 They have policies and procedures when it comes to access of information in transactions

and other related activities.

 They assure controls cover all areas of compliance in the cooperative, assets and

technology, and security of.

Establish record keeping:

 The cooperative has documents for all expenditures and other transactions which can be

seen in their system on the part where they record each transaction, and the justifications

for them such as receipt.

Nonetheless, control activities, can provide only reasonable assurance concerning

achievement of objectives, no matter how well considered and executed. Limitations inherent in

all control systems, such as judgment, breakdowns, management override, collusion, and costs

versus benefit and resource limitations, affect the possibility of achievement.

https://www.hudoig.gov/sites/default/files/Internal%20Controls%20Integrity%20Bulletin

%20CPD.pdf