I INTRODUCTION

Company Profile

Write up about the company, its board or governing body, principal officers, office address,
establishment data, business activities, status of operations and standing in the industry, relevant
history, and any other that touches the systems, processes and internal control.
Any and all relevant topics about the company.
Research Issue

Issues on internal control that are known to you, or you have observed and analyzed, or are
disclosed to you by the firm. Discuss the nature of the issues, their origin, and their (negative)
impact to the firm, to the system or to the processes. Discuss as well the company's plans to
address such issues, if any.

These issues are any and all issues faced by the company, whether technological, marketing,
logistical, management, financing, and others. You need to itemize and discuss these issues as
completely as you can. You may or may not be able to solve them; you may not even know how to
address them. But you just have to itemize them and discuss to the extent that you can.

If necessary, you can prepare a diagram or any visual presentation with adequate explanation to
point out the issue. In your diagram, pinpoint where the issues lie, the root of the process and final
output, with emphasis on the negative effect of the issue.

Focal Issue

Choose an issue that is:

◦ important to the company operations
◦ understandable to you as internal control students
◦ solvable to you even in theory. You can formulate a solution for it.
◦ touches on controls, finance and anything vital to accountancy

Scope and Limitation

 Definition of Terms

II REVIEW OF RELATED LITERATURE

• Present here relevant policies/processes of the company: policies/processes that you wish to take
down or replace or revise and improve.

• Prepare a diagram showing the processes, and prepare a discussion of these processes.

• In your diagram, pinpoint the system flaw or system void and discuss what would happen in the
flaw is corrected or if the void is filled up.

• Discuss the policy and what they lack or the areas where those policies are either faulty or
inadequate. Discuss as well what you believe should be contained in those policies instead.
You can do all these discussions on the policies by conducting interviews with people who use or
are under those policies, including customers, vendors, debtors, and anyone at all that has
something to do with those policies, including those who designed or created it or the promoters
of such policies.
You can probably ask what their comments or review of the policies are, whether their
requirements are met, or whether the policies work properly or are unfair and unworkable; and
what they want instead for you to know the needs that are not addressed by the policies or
systems or procedures.

III RESEARCH METHODOLOGY

Research Design

Discuss how you intend or plan to gather data and information: interviews with officers (who, how,
why) or review of operations manual or accounting manual or policies, or review of contracts, audit
of specific accounts, audit of specific processes and procedures (when, where, timeline, what it
takes, what you will need, other relevant steps).

Do you need or have a contact person, would-be limitations of your discussions with him (if there is
any).
 Do you need or have a contact person, would-be limitations of your discussions with him (if there is
any).

IV ALTERNATIVE COURSES OF ACTION

For your problems, it is possible--and you are expected--to come up with various different solutions that
mayt be directly or indirectly attacking your problem. These solutions may give permanent and lasting,
or temporary relief to the problem. Your solution may be to solve the problem, or eliminate a process
or change a setup or a policy, or anything that will address the problem.

Discuss and detail all these different solutions you think of, and probably discuss as well the expected
result from each, the advantage and disadvantage of each, their relative cost monetarily or otherwise,
the resources needed, and the full and overall impact to operations and to the system of internal
controls and checks and balances. Discuss fully and enlighten the reader to the full extent of each of
your alternative courses of action.

Again, you are expected to have a number of alternatives.

You can insert here any discussion of ethical and legal issues both on the existing processes, etc., and on
your proposed ones.

V RECOMMENDED ACTIONS

Your choice and recommended course of action is discussed and detailed in this chapter.

Prepare a diagram of the processes of your proposal, the system requirements, infrastructure and
equipment needed, estimated cost of your solution.

Discuss as well the monetary and non-monetary benefits expected from your recommendation. If
necessary, you may prepare financial presentations of your estimated benefits for this, example: Salary
savings (number of employees and cost) for one year, savings from subcontracting the work instead of
hiring fulltime employee, cost of your alternative versus cost without your alternative, time to do a
process in your alternative versus time of doing it without, degree of risk of wastage or error with your
alternative versus risk without your alternative.