Name: Calebjosiah C.

Getubig BSA-2B

Question: identify what are actions that are a violation of the internal controls. Likewise, how can those
actions be prevented, detected and corrected.

In the movie, companies like living robotics is a huge company that worth of billions, because of the
issue after the Junior accountant found out the abnormalities in order to hide those in Public the CEO of
living robotics wants to audit the firm Living Robotics after the company's owners learn of accounting
irregularities. The Reliability of entity’s financial reporting is one of those violated by the company and
also the discrepancies that she found brings the attention of the Board of Directors and this is where the
function of the board of the directors and it’s committees violated because they choose to embezzle
their own money and return it to their own book because of tax. These violations can be prevented if
the companies established a written policies and procedures, perform a company reconciliation, provide
adequate to staff and, also to higher level position like directors because they should have strong ethics
and shows a good leadership skills. Performing a self-evaluation of company’s internal control could also
help to prevent violating the company internal control and it will help identify possible deficiencies
before problems arise and will lead to the implementation of more effective controls, particularly with
respect to controls that may help prevent or detect fraud, a determination of whether controls have
been designed effectively.