mentioned some problems in policies and procedures to

ensure effective internal control steps can be taken to solve those problems

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An organization needs internal controls to provide greater assurance that they will achieve their operating, financial reporting, and compliance objectives; in other words to help the organization succeed in its mission. Here assuming a manufacturing company produces various kinds of biscuits. We have mentioned some problems in policies and procedures to ensure effective internal control and steps can be taken to solve those problems.
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We have mentioned some problems:

Bank Reconciliations
Variance Reports

Ordering System
Dual-Signature Company Checks

Annual Inventory

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1. Annual Inventory
The company does not reconcile the number of products the computer system says are on hand with the number of products actually present on the shelves. Companies can use a Microsoft Access database to make this process a lot easier. The database can print the inventory reports, allowing the workers who are conducting the inventory to work from a hard-copy document. After the inventory is complete, other employees enter those figures and use them to update the inventory control database.
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2. Variance Reports
Database administrators do not create customized reports to show which products show the greatest variance between the actual number on the shelves and the number of units shown in the computerized inventory control system.
These reports can be useful for conducting spot inventory audits and for controlling shrinkage. If a particular product is found to have a high level of shrinkage, management can take steps to prevent that theft and protect remaining products.
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3. Ordering System
Company owners and managers do not use any software like Access databases to develop an automated ordering system for their products and to control their inventory and order products exactly when they're needed.
They can build queries and reports that run off of those queries and provide detailed information about the number of units on hand, as well as details about the last time each product was ordered and the dates of those orders. That allows managers to control their inventory and order products exactly when they're needed.
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4. Dual-Signature Company Checks

The company does not follow the procedure that protects company assets is to require two authorized signatures on all company checks. This ensures that two people must agree that the check is legitimate and that the payment is appropriate. This curbs direct theft (where an employee with signing authority simply writes checks to himself) and indirect theft (where one employee creates a fake supplier that bills the corporation). Two sets of eyes are more likely to discover such fraud.
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5. Bank Reconciliations
The company has not the internal control in reconciliation of transaction to ensure that all physical cash transactions have been correctly recorded during a specified period.
The company requires that the reconciliation is performed by someone other than the transaction clerks who are in charge of billing, accounts payable and receipts. The reconciliation clerk reviews cancelled checks that are returned with the statements of the examined time period to ensure that they are made out to the same names as those in the accounting system. This procedure not only catches many inadvertent transactional errors but also theft and fraud.
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