Explain basic principles of an internal audit control system, Auditing

The core principles of financial internal control are explained here: accounting and financial operations can be separated and the main purpose is the handling of cash and the copy of the movement thereof can be done by different persons. Liability for the performance of the job must be evidently stated so that there may be no reason for doubt or confusion later.
Too much assurance should not be pinned in one entity or individual. Nearly all scam have been committed by trusted officials or staff members. It is interesting to keep record that frauds have occurred owing to their being trusted. Relation opinion relating to shift of an employee from one job to another must be the inflexible guiding rule. And it is an effective safeguard against collusion and is predictable as an important canon of sound business.
Mechanization of the work wherever practicable and feasible should be resorted to, mechanical devices such as recording time clocks, cash register, calculation machines should be known. A system of control accounts must elegantly be fitted in the book keeping structure.
The work should be so managed that work done by one employee must be properly checked by self independent employee. Such continuous & constant checking goods moral control and the errors and the scams cannot go undetected.
Posted Date: 7/28/2012 4:46:01 AM | Location : United States

Related Discussions:- Explain basic principles of an internal audit control system, Assignment Help, Ask Question on Explain basic principles of an internal audit control system, Get Answer, Expert's Help, Explain basic principles of an internal audit control system Discussions

Write discussion on Explain basic principles of an internal audit control system
Your posts are moderated
Related Questions
Leasehold Property - Audit Process Exactly the same process is adopted for leasehold buildings and land as applied about freehold buildings and land except in the matter of de

IAS 28 - Audit Process IAS 28 applies in accounting for investments in associates, except those held through: Venture capital organisations, or Mutual funds,

International, Assurance Auditing, Standards Board (IAASB) The prologue to the International Standards on Quality Control, Auditing, Assurance and Related Services is issued to

Auditors Procedures Before Stock Taking 1) Study of the clients stock taking recommendations and instructions for improvements or changes whether the auditor considers them in

Non Current Assets or Fixed Assets In usual countries, not current assets are commonly classified like: a) Intangible assets Patents Licences Developme

Completeness of Liabilities In distortion, the directors tend to involve non-existent assets or keep out liabilities. Hence whereas along with assets we are especially concern

Q. What are the different methods available for collection and analyzing audit data? Q. Describe and explain common audit findings in the fields of: a. Informed consent proce

#quInternal Audit checklist for fixed assetsestion..


Explain the purpose and content of a statutory audit report. Explain what recommendations you would make to the case study business Statuary and Non- Statuary audits In