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
project report on absorption of overhead and its different method

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

Audit of Partnerships The audit of a partnership is not normally required by statute and so the auditor must agree with the client what his rights and duties are going to be. T

Classification of Individual Business Risk Individual business risk can be low or high impact and low or high likelihood. Here are some illustrations for a satirical magazine.

You are the external auditor of Apex tour Ltd, a company which promotes New Zealand tours to Australia and owns chain duty free shops. You have been auditing the company since it w

Q. Walkthroughs for auditor? Walkthroughs provide the auditor with evidence to: 1. Confirm auditor's understanding of the process flow of transactions. 2. Confirm auditor

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

Relevance of Audit Evidence The relevance of audit evidence has to be determining in relation to the overall objective of forming a reporting and opinion on the financial stat

IAS 36 Impairment of Assets It is very necessary for the auditor to determine the client's method for determining and accounting for impairments.  Corresponding IAS 36, 'impai

Internal Control Procedures: As an auditor, you have discovered the following problems with the accounting system control procedures of Jim's Supply Store. For each of the followin