Importance Of Internal Control In Accounting

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Internal control: In accounting and auditing we can define the internal control is process of an organization assuring and achieving the goals more efficiently and also operational effectiveness which are reliable to financial reporting and internal control and is also compliance with laws rules and regulations and policies. There are seven internal control procedures in accounting which are as follows: 1-reconciliations 2-trail balances 3-approval authorities 4-searation of duties 5-accsess control 6-physical audits 7-documentations These are the main things which are broken to seven categories of internal control. Internal control is also important for financial reporting and safeguarding plan assets. These internal control techniques diminish the risk of losing assets and also insure more accurate and complete plan information it shows the most accurate financial statements and shows the plan which is most reliable and with laws and regulations. Journal article: Internal control (journal of accountancy) An efficient internal control system in company leads to the company to decrease the risks and monitor…show more content…
Committee members of audit do all the functions self-sufficiently of management. committee members possess a perfect mix of operating expertise and financial control expertise. the committee understand the evaluation and monitor the broad of organizational control environment. the committee oversee effectiveness, relevance and perfection and trust of operational and financial reporting to the board, and also to investors and many other internal or external users. The company board of directors saw the long-term existence and compliance with the ethical standards. Full board have a lawful but difficult relationship with independent and internal auditors, senior executives who controls financially and key corporate and executives who operates business

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