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Accounting- Internal control

The purpose of the system of internal accounting controls is to make sure a business is operating according to the policies and plans of management in regards with measures that have a direct relation to the protection of assets and to the reliability of accounting information. A system of internal control in a business is set up to safeguard the business’ resources against waste or fraud, to guarantee the accuracy of accounting information, to assess performance of the company and to make sure that company policies are being followed.

To attain well functioning internal control, there are certain guidelines that can be used. The first would be to establish clear lines of responsibility. Businesses should assign responsibilities to an individual or a department. Clear descriptions of each department should be recorded to avoid any possible problems later. Each type of transaction should have routine procedures to be followed in order to direct activities of the business as planned...

Posted by: Sandeep Jador

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