INTERNAL CONTROL PROCEDURES 2
Forthis assignment, I will highlight one of the internal controlprocedures that I witnessed its implementation while working atDunkin’ Donuts. The firm’s management noted that a significantnumber of employees and leaders were using the agency assets andresources such as vehicles and laptops for unofficial purposes. Theleadership acknowledged the fact that this trend was eating into asignificant portion of the company’s profits by creatingunnecessary costs. As such, it was necessary to implement internalchanges meant to discourage the unofficial utilization oforganizational resources and assets.
Toachieve better control of how the firm’s assets and resources wereused, the company initiated a more stringent examination of creditcard charges, expense reports as well as utility bills. The move wasaimed at ensuring all the charges incurred by the firm wereappropriate and had to do with its official activities. Additionally,the firm moved to strengthen the maintenance of vehicle logs byensuring each time any company vehicle is used, the purpose, mileageand name of the driver are highlighted properly. Another aspect ofthe internal control procedure aimed at encouraging betterutilization of the firm’s assets was to review the vehicle logs aswell as equipment inventory periodically.
Thenew internal control measures proved quite successful as it compelledmany of those who had formed the habit of putting the firm’s assetsto their personal use to refrain. Consequently, the company’svehicles became more available for official use. All levels ofemployees became more responsible in the way they used companyresources and assets such as the telephone, internet connection andeven laptops. The company recorded a significant drop in its utilityand miscellaneous costs in the following financial quarter, anotherindicator of the effectiveness of the internal control procedure.