Internal Controls

Internal Controls XACC/280 October 7, 2012 Vaunda Davis Internal Controls Internal control is the process cunning to ensure reliable financial reporting, effective and efficient operations, and conformism with applicable laws and regulations. Internal Controls ar needed to ensure the adequate account of revenue under the guidelines of GAAP .These controls argon aimed at ensuring compliance with revenue recognition guidelines and safeguarding pluss against theft and unau exceptrized use, acquisition, or disposal is also part of internal control. There be six principles of internal controls. These control principles establish responsibility, using physical, mechanical, and electronic controls; segregate duties, and perform independent internal verification. * Establishment of debt prick: Responsibility of a task must not tho be clearly established, but also assigned to nonpareil individual. This leave insure that if something goes wrong responsibility can b e traced to one individual. * Maintaining of Adequate records and Separate Record Keeping from the restrain of Assets: Maintaining adequate records minimizes transaction errors, because source documents of the various accounts can be used to review the chart of accounts.

This principle also ensures the security measures department of assets and reliable recording of information. This internal control prevents a psyche who has admission price to an asset from keeping the accounting records of that asset * Segregation of Duties: This will ensure the accuracy of one individuals work, by checking it wi th the work of other individual. * App! lying Technological Controls: The use of cash registers, locks, and own(prenominal) identification scanners, are used as safe guards to entertain assets and effectively recoil the improper use of information, through access limitations. * Insuring Assets and Bonding place Employees: Insuring assets will allow a corporation to protect itself from potency loss and allows a company to procure an...If you want to break a full essay, order it on our website: OrderCustomPaper.com

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