Question

Internal control procedures are important in every business. Companies use an internal control system to monitor and control business activities and delegate responsibilities.

Explain at least one issue that an internal control procedures would prevent in a workplace.

Describe how difficult it would be to monitor business activities without internal control procedures.

Answer 1

Internal control system is very important for any business organisation to reduce fraud and errors and a good Internal control system will help the auditor to relay on the information and follow less audit procedure and detailed examination in areas where auditor observe that internal control system is weak

Internal check being a part of Internal control system which operates continuously as a part of routine system where by work of one person will be automatically cheakch by another person in the ordinary course of business

One issue regarding Internal control system in workplace is

The duties of the members and staff must be changed from time to time without informing them so frauds cannot be done by the person's

Without any Internal control system in the organisation it is difficult to monitor and chances of MISAPPROPRIATION of duties my happen

And also chances of cash emblizment and missuse of company resources lead to damage to the company