Internal Control Report system introduced in Business because Internal controls filter through the whole business to:
• Help align objectives of the business
To ensure thorough reporting procedures and that the activities carried out by the business are in line with the business's objectives
• Safeguard assets
Ensuring the business's physical and monetary assets are protected from fraud, theft and errors.
• Prevent and detect fraud and error
Ensuring the systems quickly identify errors and fraud if and when they occur.
• Encourage good management
Allowing the manager to receive timely and relevant information on performance against targets.
• Allow action to be taken against undesirable performance
Authorising a formal method of dealing with fraud or dishonesty if detected.
• Reduce exposure to risks
Minimising the chance of unexpected events.
• Ensuring proper financial reporting
Maintaining accurate and complete reports required by legislation and management and minimising time lost correcting errors and ensuring resources are correctly and efficiently allocated.