Question

Describing the advantages of good internal control activities from the viewpoint of the employee. (150-200words)

Answer 1

The advantages of good internal control activities from the viewpoint of the employee are:-

a)By having strong internal controls in a company, the properly managed internal controls can prevent any employee of the company from being accused of any irregularities.

b)Blame of misappropriations of funds cannot be imposed on any employee of the organisation, as the company is regulating under proper internal controls and the processes are being checked on timely basis for modification

c)By having good internal controls the employees lead to a more efficiently run organization, resulting in better profitability and thus ultimately in better remuneration.

d) Good internal controls will result in greatly minimizing the risk of resource misuse, and thus the financial statements would not be showing negative results

e)By having proper bonus plans, employees work hard and thus prevents any financial irregularities by detecting them quickly.

f)Proper internal controls will result in no fraud situation and thus all the employees will be fairly paid.

g)Internal controls makes the organization process-dependent rather than making it of person-dependent, thus reducing the workload of the company

h) Strong internal controls increases accountability within the organization, resulting in proper profitability