Case Study - Drotos Theaters (Auditing) Essay Example | Topics and Well Written Essays - 2250 words

Case Study - Drotos Theaters (Auditing) - Essay Example An evaluation of the manual and computerized control activities found that the computerized accounting system is accessed only when the controller posts the journal entries into the financial accounting system. Since the computerized system does not aid in the detection of miscalculations or frauds before the entries are made an incorrect number can easily go undetected and cause a serious accounting problem. The controller is responsible for manually depositing cash and recording transactions. Delegating these two important duties to the same person leaves the company with no system of internal control. The cashiers collect cash at the box office and issue tickets to customers. The company does not specify how the cashiers are accountable for the cash they collect and the tickets that they issue. The cashiers are the first point of contact between the customers and company’s cash transaction and therefore it is crucial to ensure that this transaction has a fool-proof control system. Since the ticket taker manually collects tickets it is not guaranteed that they will not allow unauthorized persons into the theater. There are many internal controls which are not present in the existing system. The controller cannot be responsible for recording the transactions and depositing money into the bank account. The controller can easily adjust the deposited amount and recorded amount according to how they see fit causing a serious lack of internal control.

Causal Analysis Essay Example | Topics and Well Written Essays - 500 words

Causal Analysis - Essay Example Thus, economic freedom characterized by an individual's increased autonomy in making decisions regarding his income and an increase in wealth-creating opportunities made available to him; is an important means to achieving political freedom because of its dispersing effect in the concentration of power (Freidman 9). Friedman illustrates this through historical evidence where capitalism, an economic arrangement focused on free markets and economic freedoms, effectively restricted centralized power from abusing its control on the political and civil liberties of citizens (10). Hence, individuals who experience economic freedom through controlling the means of production and owning private property are given a share in the political power of that society, taking power away from the central government. This shift in power structure creates incentives for governments to give in to demands for civil and political liberties, creating the necessary conditions to achieve political freedoms an d democracy (Friedman 11). Economic freedom is therefore a necessary cause of political freedom and democracy.