Description

INTRODUCTION

A system of internal control is how an organization keeps an atmosphere that encourages honesty and discourages management and staff from doing things that aren't right. During the planning phase of an independent financial statement audit, a business's internal controls are looked at. Accounting and auditing describe internal control as a process that makes sure an organisation works well and efficiently, follows laws, rules, and policies, and gives accurate financial reports. A broad idea of internal control includes all parts of how a company handles risks. It is when the actions, goals, attitudes, policies, and efforts of a department's employees all work together to make it likely that the department will accomplish its mission.