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It is very important for any public company to implement financial reporting controls hence there is need to come up with a well-stated risk control matrix in order to assess any form of risk. The main area to consider is filling with corporate taxes within the organization which contains a lot of risks. The memo serves to communicate to the company's board of directors any risk and the necessary recommendation for the system. It is very important to ensure that all the set controls concerning the filling of corporate taxes have been affected to ensure compliance to the set rules and regulations.
The prepared risk control matrix is a document which is narrative in nature which will mainly keep on talking about various activities involved in control any risk associated with filling of corporate taxes. Roles of various people involved in the process will also be provided to ensure there is a good chain of command (Cazier, Rego, Tian & Wilson, 2015) . Corporate tax is normally imposed on the income of any company which has been in business operations. When dealing with filling for corporate tax, there is a lot of risks that are involved such as tax evasion, tax fraud among others. Depending on nationality, every country has its own corporate tax rate in the market.
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There is various risk involved when dealing with corporate taxes such as transactional risk where every transaction made by major corporates will always involve different stages of uncertainty on how relevant tax laws will be applied. Transactional risk normally will result in loss of part of tax revenue which would be meant for the government. There is also an operational risk when filling corporate taxes such as when transfer price is involved in the market. Finally, compliance risk and financial accounting risk will also be faced in the process that also affects service delivery.
When dealing with corporate taxes, it is very important to fill the data with the only correct and necessary information to ensure the accuracy of the recorded data in the system. In addition, it is very important to disclose all the correct information concerning revenue earned for tax purposes (Bauer, 2016) . As part of the risk control matrix accurate and correct accounting for tax should be conducted to ensure that the necessary data was recorded which will not affect financial statements. As part of control measures, it is very important to ensure that source information is only gathered from the necessary accounting department to avoid any materiality. In addition, as part of control measures, tax rates should be used for current and future tax calculations without any alternation in figures.
Recommendation for a system of control.
Our organization tax department should also ensure that all the tax calculations have been carried out in the best way possible. Tax contingencies should also be adequately supported to ensure it complies with relevant regulations in the market. In addition, the substantive test should be regularly conducted with the internal audit department to check any weakness in the set controls. Moreover, all the staff members involved in the filling corporate taxes should have strong passwords in their system to avoid unwanted access to the system (Khlif & Samaha, 2016) . When making any changes in the system, it is very important to ensure that authorization was acquired from the necessary management.
The strength of the system
The recommended system of control there is various strength associated with it such as the company can check on the progress on tax filing and tax calculation in the best way possible. The company can also use the system of controls to determine how the company has been paying tax to the relevant government agencies. In addition, it also helps in the execution of different audit programs such as internal and external to ensure all the financial statements are true and fair. The new system will also ensure that proper checks and balances are provided when filling for a corporate tax that will help to adhere to international accounting standards.
The new recommended system has the ability to ensure segregation of duties and functions where there will be people involved in tax calculation while others will be involved in tax filling within the system. In addition, to ensure accuracy, it will also ensure authorization of every tax payment for proper efficiency. Input and processing controls will take place easily in order to ensure tax compliance (Gallemore & Labro, 2015) . Finally, the system has the ability to ensure tight security in the internal controls where it will ensure restricted physical access of major rooms where tax filling takes place.
Weakness
In case the new tax system is not computerized, in most case, it will be prone to human error which may result in inaccurate information and calculations in the system. Human errors, in addition, can also result in wrong information recorded during tax filling which will result in poor decision making and other tax complications. Another major weakness for the new system involved that wrong accounting entries will also in most cases create tax errors. Finally, the system is subject to manipulation from different stakeholders who want to evade tax.
References
Bauer, A. M. (2016). Tax avoidance and the implications of weak internal controls. Contemporary Accounting Research , 33 (2), 449-486.
Cazier, R., Rego, S., Tian, X., & Wilson, R. (2015). The impact of increased disclosure requirements and the standardization of accounting practices on earnings management through the reserve for income taxes. Review of Accounting Studies , 20 (1), 436-469.
Gallemore, J., & Labro, E. (2015). The importance of the internal information environment for tax avoidance. Journal of Accounting and Economics , 60 (1), 149-167.
Khlif, H., & Samaha, K. (2016). Audit committee activity and internal control quality in Egypt: Does external auditor’s size matter?. Managerial Auditing Journal , 31 (3), 269-289.
