Internal Controls And Internal Control

1466 Words Apr 10th, 2016 6 Pages
Internal controls refers to all the policies and the processes used by the management to safeguard the assets of an organization from mysterious loss and to ensure reliability as well as the integrity of the financial information provided by the accounting section (Pickett, 2013). In addition, internal controls work towards ensuring that the management is in possession of accurate, complete, and timely financial information so as to monitor the progress and enhance the business decision making process (Ramos, 2008). Further, the internal control ensure compliance with the financial reporting rules, promote efficient and effective operations, and offer a system through which the management can evaluation the level at which the organization has achieved both the short term and the long term objectives. Every organization needs to have properly designed internal control procedures to facilitate prevention which the major purpose of internal controls. Notably, a properly designed internal control system is comprised of the control environment, risk assessment, oversight, information and communication, and test of control activities (Flood, 2013). The internal controls evaluation begins with an evaluation of the organization’s operations from a different point of view, identification of who authorizes and records transactions, and a review of the job descriptions.
Plan To Evaluate Internal Controls There are five major steps that are utilized in undertaking the review of the…

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