Recommendation Brief

Flexible Budget Paper

ACC/544

Our accounting firm was hired by Phoenix Corporation to evaluate its current accounting system to make sure they are in compliance with regulations and guidelines. After carefully analyzing Phoenix’s financial data, our firm discovered the current accounting system is completely out of control. The system is lacking the internal controls that are needed for financial stability and continued growth for the company. Internal controls are systematic measures implemented by an organization to safeguard assets and resources, and ensure completeness and accuracy of accounting data (McCarthy, Flynn, & Brownstein, 2004). Internal controls are imperative when trying to improve the company’s financial reporting, regulation compliance, and daily operations. Management can better access the short-term and long-term objectives of the company when effective controls are in place. Without internal controls, the company will have a difficult time managing daily and long-term goals for the company. This brief will thoroughly explain the users and benefits of an internal accounting system, and provide a recommendation for Phoenix information.

Users of Internal Accounting Information

Management and all employees of the company are users of the internal accounting information. All levels of management use internal accounting for internal and external decisions concerning the organization. Internal accounting can produce capital budget details and long-range goals that can help management plan and meet objectives. Internal reports produced can aid management in making daily decision relating to employees. Internal reports will also give management a detailed understanding of the relevant facts to decide whether an internal control deficiency is significant or a material weakness (McCarthy, Flynn, & Brownstein, 2004). All employees are users of internal accounting information because it can manage the payroll system and generate pay checks....