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
With internal audit we always require to be careful of any manipulations within the company itself. Errors and frauds within the company cannot be denied /overlooked at any cost.

In order for auditor to perform audit as per GAAS, only programming independence is required from the audit client. Ans: Yes I agree with the statement as: Programming independe

Disclosure Requirements - Investment In common terms, the following items have to be disclosed in the concern to all investments: (a) The accounting policies about:-

Common stock valuation 1. Features of common stock (You may review common stock learned from TCA 221) a. Residual claim on income and assets (after debt holders and preferre

Problem: (a) Your client has sought your advise on the procedures to be adopted for carrying out the stocktaking which is based on a year-end count. You are required to prepa

internal control procedures to be put in place when purchasing a motor vehicle

concept,need,advantage

State four factors considered determining sufficiency of audit evidence

Procedures in Evaluating the Work of Expert The auditor must get reasonable assurance which the expert's work constitutes suitable audit evidence in based of the financial inf

The Concept of Audit Evidence Auditing is an evidence gathering exercise. It is an exercise carried out to confirm the assertions made by the management in carrying out the man