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Why was the Internal Control Report system introduced in Business?

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Why was the Internal Control Report system introduced in Business?
posted Apr 29, 2016 by Anushka

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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.

answer Jun 8, 2017 by Abhishek Maheshwari