Can You Explain The Types Of Controls?

Internal control means all the measurement taken by the management to improve the working efficiency, to protect assets from misuse, to check the reliability an accuracy of accounting staff and to see that prescribed policies of the management is followed. The management is responsible for establishing and maintaining a system of internal control. The internal control system consists of accounting controls and administrative controls. Accounting controls are necessary for safeguarding assets and reliable accounting record. These controls are developed to provide assurance that transactions are recorded under accounting principles and employees are responsible for keeping assets. The employees are allowed to use asset with permission from management. The action is taken when assets are not properly handled.

                The administrative controls refer to the procedure for making decisions. The budgetary control, quantity control, policy control, policy matters, work standards, internal check are part of internal control. Internal control consists of all measures taken to provide management with assurance that everything is functioning as it should internal control means whole system of controls, financial or otherwise established by the management in the conduct of a business, including internal check, and other forms of control.