--%>
Assignment Help - homework help

Principles of an internal audit control system

Write down the essential principles of an internal audit control system?

E

Expert

Verified

The essential principles of financial internal control are elucidated below: Financial and accounting operations should be separated that is the managing of cash and the recording of the movement thereof must be done by various persons. Responsibility for the performance of the job should be clearly stated so that there might be no room for doubt or perplexity subsequently.

Too much confidence must not be pinned in one individual. Almost all frauds have been committed by trusted employees or officials. It is interesting to note that frauds have happened owing to their being trusted. Relation principle riveting to transfer of an employee from one job to any other job must be the inflexible guiding rule. This is an effectual safeguard against complicity and is recognized as a significant standard of sound organization.

Automation of the work wherever practicable and feasible must be resorted to, mechanical devices like cash register, recording time clocks, computation machines must be introduced. A system of control accounts must elegantly be fitted in the book keeping system.

The work must be so assembled that work done by one employee must be appropriately checked by independent employee. Such constant and continuous checking goods moral control and the mistakes and the frauds can’t go undetected.

   Related Questions in Auditing

  • Q : Marketing audit for goods and service

    Marketing audit for goods and service industry: This basic concept of marketing audit applies to both material goods and service industry. The marketing audit is a powerful tool with banking industry throughout world. Banking world to

    		•
  • Q : Functions of Internal Audit Elucidate

    Elucidate various Functions of Internal Audit?

    		•
  • Q : Auditing around the computer Audit

      Audit procedures that ignore the actual computer processing part of business activities. A sample of input is tested and verified through standard audit technique, and the output is checked. Auditing around the computer assumes that if the output rights, then the processing is righ

    		•
  • Q : Explain Audit Controls Audit Controls :

    Audit Controls: The common definition of an audit is a valuation of a person, association, system, procedure, enterprise, product or project. The word most generally refers to audits in accounting, internal auditing, and government auditing, however a

    		•
  • Q : Difference between statutory audit and

    Elucidate the difference between statutory audit and internal audit?

    		•
  • Q : Introduction of the term Internal Audit

    Give a brief introduction of the term Internal Audit and also write down the Role of Internal Audit?

    		•
  • Q : Calculate the internal control audit

    Tell me that how we can calculate the internal control audit?

    		•
  • Q : Audit report A signed letter from the

      A signed letter from the auditor of a company, included in the annual report, that state whether or not the finan- cial statements fairly present the results of operations and the financial position of the company. An annual audit is required by the Exchange and Securities Commissi

    		•
  • Q : Explain Marketing Audit Marketing Audit

    Marketing Audit: One of the most fundamental parts of marketing planning process is marketing audit. It is conducted both at the beginning of the process and also in between the series of points during the implementation of plan. Both internal and ext

    		•
  • Q : Scope of internal audit How can scope

    How can scope of internal audit aid you?

    		•