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
The assignment continues the research process by further exploring and defining the problem statement through the development of research objectives. These objectives will allow yo

Develop an audit program to identify and reduce potential fraud using ACL.

Verification Procedures - Long-Term Liabilities a) Received a schedule detailing the sums due at the starting of the year, redemptions and additions and the sum due at the yea

Assertions about classes Assertions about classes of transactions and events for the period under audit : a) Occurrence -events and transactions which have been recorde

An auditor is conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor ke

Records kept by AUDITOR of procedures applied, tests performed, the information obtained and pertinent conclusions reached in the course of the AUDIT. (2) Any records developed by

Subsequent Events - Audit Process IAS 10 Events after the Balance Sheet Date prescribes the accounting for, and disclosure of, events than the balance sheet date. Events th

Tangible Non Current Assets The verification approach is fundamentally similar in each of these.  Extensive disclosure is utilized in most countries and IAS 16 Property Equipm

Framework of critical thinking principles (a) Identify the key steps in this framework/ concept. (b) Briefly explain each of the key steps, in your own words. Ans: Thin

Assessment tasks: This assignment requires you to revisit the case of the collapse of US energy giant Enron Ltd. Your revisit starts with a reading of the excerpts from memos