Jerho J.

Abao
BSMA-3

JJJ Company

Part. A

I. Company Problem: Inefficient Internal Control System

JJJ Corporation, a medium-sized manufacturing firm, has been dealing with a severe internal control
issue involving its financial procedures. Despite years of consistent expansion, the company's
internal control system has shown to be inefficient and inadequate in controlling financial
transaction risks.

II. The Origin of the Problem

The dependence on manual procedures for data input and reconciliation has resulted in a slew of
mistakes, delays, and an increased risk of data manipulation. Furthermore, the company's inability to
invest in current accounting software or integrated systems has hampered the automation of
financial activities and real-time insights, increasing the inefficiencies. Furthermore, a lack of proper
training for staff doing financial activities has left them prone to mistakes and inconsistencies.
Furthermore, the lack of strong management and monitoring has allowed for illegal access to
financial data and potential fraud. Finally, the company's inability to undertake a thorough risk
assessment has exposed it to a variety of financial hazards, making it critical to address these
fundamental weaknesses in the internal control system.

Part. B

I. Solution to the Problem

The proposed solutions provide a complete plan for resolving JJJ Corporation's internal control
system inefficiencies and strengthening its risk management framework. First and foremost,
implementing sophisticated accounting software will automate financial procedures, reduce
mistakes, and offer real-time access to vital financial data, eventually simplifying operations and
improving accuracy. Furthermore, investing in staff training and development will provide the
workforce with the ability to execute financial activities with accuracy and expertise, enabling the
consistent application of internal control processes and the prompt discovery of abnormalities.
Furthermore, the implementation of clear and well-documented internal controls, such as rules for
permission, data access limits, and segregation of roles, would strengthen the company's financial
risk defenses. Internal audits and reviews on a regular basis, along with a thorough risk assessment,
will increase vigilance, highlight flaws, and enable rapid remedial steps. Increased managerial control
and the implementation of checks and balances would deter possible fraud and unlawful access,
protecting the company's financial integrity. These complete solutions, when combined, offer a
strategic roadmap that positions JJJ Corporation to successfully strengthen its internal control system
and risk management framework, supporting long-term financial stability and growth while adhering
to industry code guidelines. Maintaining these improvements will demand constant monitoring and
a commitment to continuous development.

II. Conclusion

The proposed solutions listed above provide a holistic strategy for addressing JJJ Corporation's
internal control system and risk management challenges. By implementing these steps, the firm may
expect to see significant improvements in the efficiency and effectiveness of its financial operations.
These enhancements will not only increase financial accuracy but will also dramatically minimize
operational risks and guarantee greater compliance with industry standards. JJJ Corporation
complies with the industry standards for effective internal control and risk management by following
these suggestions. It is critical to underline that continual monitoring of these improvements, as well
as a commitment to continuous improvement, are critical to sustaining the improved internal control
system and risk management framework in the long run.