Purpose of Internal Control

What are Internal Controls?
An internal control is a plan of organisation for your business. It co-ordinates all systems used in your business in order to safeguard the business’s assets. It also checks the accuracy and liability of the accounting information, promotes efficiency, encourages staff to be productive and assists management to adhere to the policies of the business.

In other words, internal controls is a system which checks how the business is going and puts in place a plan that will help the business keep on track. Controls also prevent people from doing things their own way, or from robbing the business.

With controls in place, employees’ duties can be arranged and the records and systems designed to make it possible to carry out effective accounting control over the assets, liabilities, income and expenses of the business. Under this system the work of the employees is broken up wherever possible, so no single employee will perform a complete cycle of a particular operation.

Main Purpose of Internal Control

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