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Internal controls are methods and policies designed to prevent fraud, minimize errors, promote operational efficiency, and achieve compliance with established policies and procedures.
The benefits of a robust internal control system
Ensure the accuracy of the accounting data and financial statements of the company;
• Reduce the risk of fraud or theft of the company by a third party or company employee;
• Reduce the risk of employee unintentional errors that could harm the company;
• Reduce risk of non-compliance with company policies and business processes; and
Prevent exposure to unnecessary risks due to insufficient risk management.
Normally, as the company grows, the benefits of an internal control system become larger as the company owner becomes more and more difficult to monitor and control these risks. Based on your own face-to-face experience.
- Sales control and delivery
- Purchase control
- Inventory control & fixed assets
- Control of cash and bank money
- Control of information systems