Internal control

An internal control is a financial or other form of management control that helps provide a business with more effective, efficient operation, or to enable the business to comply with laws and regulations. Many internal controls are concerned with the application of authority and approval levels (for example, who can authorise purchases or make payments). Others are concerned with the complete and accurate maintenance of business records. The system of internal controls is usually monitored by the internal audit function (if one exists) and is reviewed by the auditors of a business as part of their audit of the financial statements.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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