Popular misconception is that the internal control system is implemented simply to stop fraud and error. As the points below show, this is not the case.
- The orderly and efficient conduct of its business, including adherence to internal policies
- The safeguarding of assets of the business
- The prevention and detection of fraud and error
- The accuracy and completeness of the accounting records, and
- The timely preparation of financial information.
Popular misconception is that the internal control system is implemented simply to stop fraud and error. As the points below show, this is not the case.
A lack of internal control implies that directors have not met their obligations under corporate governance. It specifically means that the risk management strategy of the company will be defective.
– The orderly and efficient conduct of its business, including adherence to internal policies
– The safeguarding of assets of the business
– The prevention and detection of fraud and error
– The accuracy and completeness of the accounting records, and
– The timely preparation of financial information.
This lesson is waiting for its secure Vimeo video.
