To Keep a Company's Integrity and Prevent Fraud, Internet Controls Should be Utilized

Satisfactory Essays
Internal Controls

Internal Control is systems and controls that are implemented in a business to ensure that the integrity of information and prevent theft and fraud of the company’s cash and assets. This helps to ensure the legal Compliance and provide accurate information efficiently.

The purpose in Internal Controls to show you’re shareholders and employees what you would like the business to achieve in the year to come. When an business has internal controls implemented this helps to ensure that this business has the best quality of their products to sell. Internal control is there to get your customers to trust into your business.

Internal Auditor’s Role
Internal Auditors primary functions is to
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Internal Controls Protection the following Assets.

Stock must be in orders to an approved plan once the purchase orders have been displayed they must be authorized. Stock may be released on a requisition delivery note and is to be received in quality check to specification. The goods received note is to be documented recording the transaction audit trail produced and input checked.
Work flow diagram must be constructed in detailing the process that was followed and the errors of responsibility to be corrected. Perpetual or by-annual stock accounts to be conducted to identify the stock variances and Internal controls to be audited so that the process is followed correctly.

All cash receipts are to be recorded; totaled and banked daily any money that is not banked for the day is counted by a second person and stored in the safe (safeguarding the asset). Daily banking is checked to your cash sales journal or your register account. Check that the company’s bank statement is correct (That your cash sales journal is to be checked with your bank account so that it reflects the amount deposited). Tangible Assets:

Look to identify all tangible assets with the unique serial number applied by the sticker or take a physically check that the asset is available and in good working condition, this must be done at least once a year.

Produce a monthly ageing report over customers that are overdue,
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