MCAA U4DB Initial

MCAA U4DB Initial
Student’s Name
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MCAA U4DB Initial
Maintaining an effective managerial control is critical in enhancing the quality of financial reporting in any particular organization (Gibson, 2012). Ideally, Bovar Company is encountering management control problems as a result of the integration of the various companies into a single company. The current problems are a result of the functional organization structure that the management in the company implements. It is advisable that the top management adopts a more effective strategy such as implementing a matrix organization structure in order to enhance the management control in the company. Furthermore, Bovar Company may face control risk due to the poor arrangement of the organizational structure. Ideally, control risks refer to the situation where misstatement of the financial statement may occur without being detected. It may be as a result of poor internal controls in the organization. For instance, the problems in the company including communication issues, cross-functional problems, and accountability challenges can propel the occurrence of control risks in Bovar Company. As an auditor assessing the control risks in Bovar Company, it is essential to evaluate the inter controls such as supervision, segregation of duties, and the aspect of authorization and approval (Moeller, 2014). Additionally, it is efficient to evaluate the internal audit of the company. Furthermore, every ext…