The Importance Of A Control System Within The Business.

1108 words - 4 pages

Internal controls are methods or procedures adopted in a business to:-Assist in achieving the businesses' objectives- Ensure financial information is correct and reliable- Ensure cooperation with all operational and financial requirements- Protect its AssetsThey are essentially checks and balances within a business. It's objective is to reduce errors, limit financial losses and prevent fraud. They also segregate duties within the company and limit one persons control over an entire area. For example-never have one person writing, receiving and reconciling your business accounts.As the owner of Millennium Land Developers, it is your responsibility to ensure that the business has a good internal control system. As they flow through the entire business to:- Help align objectives of the business:To make sure everything is covered in the reporting procedures and the activities currently undertaken by the business are in line with the objectives of the business.- Safeguard assets:Makes sure the physical and monetary assets of the business are safe from theft, errors and fraud.- Prevent and detect fraud and error:Enabling the internal control system quickly identifies fraud and errors when they occur.- Allow action to be taken against undesirable performance:A method of dealing with dishonesty or fraud if detected- Reduce exposure to risks:Minimising the probability of any unexpected events happening- Ensuring proper financial reporting:Maintains complete and accurate financial reporting requirements by management and legislation and minimising lost time by fixing mistakes and ensuring resources are efficient and mistake free when allocated- Completeness:That all the required information are included in the business reports. These include transactions and records.- Accuracy:Making sure that the right amounts are recorded into the correct accounts- Authorisation:Makes sure the correct level of authority deals with approvals, computer access and payments etc.- Validity:That the documents for the activity performed have incurred the liability- Existence:Makes sure the existence of an asset or liability has been received. Whether or not a purchase has been received for goods or service.- Error handling:Makes sure that any errors in the system have been identified and processed- Segregation of duties:Maintains certain duties are performed by different positions and kept separate.- Presentation and disclosure:Ensures the financial reports are in line with regulations and principles.A good system of internal controls will help the business in numerous ways. These include:- Error Reduction:With a good system of internal controls, it will ensure that mistakes will be minimal and this will save time and money for the business.- Protection for staff:With an internal control system, staff will have the protection of the system to back themselves up if in any way there is a dispute with an action. The employee can say that he/she acted in the way noted by the...

Find Another Essay On The importance of a control system within the business.

The Importance of Control in Quality Management

1413 words - 6 pages 1IMPORTANCE OF CONTROL IN QUALITY MANAGEMENTImportance of Control in Quality ManagementTanner DewaldTexas A&M University- Central TexasAbstractMy research contains the importance of a quality management system (QMS), the elements that make up a QMS, why controlling skills are important to the QMS, ways control can be used in management, and common ways of how control is lost in your department. Sources were found in textbooks, periodicals

The role of a guidance counselor when sexual abuse is reported within the public school system.

988 words - 4 pages effective in reducing children's vulnerability to sexual abuse. Children's knowledge and performance in simulated scenarios can be measured, but improvement in these areas following exposure to a prevention program is not necessarily predictive of how children will respond when they find themselves facing a real situation. Since a majority of abusers are members of the child's family or other trusted adults--not strangers--a myriad of powerful

Compensation Management Explain the need for designing of Compensation Policy. What is the importance of compensation system in business organization?

1146 words - 5 pages middle, or at the high end.Organizations should conduct periodic reviews of their salary ranges to ensure that they are in-line with the current employment market and their targeted position within that market. While large organizations may conduct their own salary benchmarking on a yearly or on-going basis, smaller organizations can purchase salary surveys when needed. Additionally, organizations need to determine the number of salary ranges that

Acceleration Within the School System

2526 words - 10 pages Papers on the topic, acceleration within in the school system, have had two very distinct arguments. There are those who believe that accelerating students, enhances their psychological welfare and academic achievements. On the other hand there are those who raise concerns as to whether, accelerating students does negatively affect them in some dimension. The aim of this paper is to give an overview of acceleration in relation to the

The Importance of Business Growth Strategies

2006 words - 8 pages very much ahead . Hopefully with Topsy having the resource of having a massive search archive, it might improve apple’s Siri voice control system to allow it to search for certain apps as the amount of apps being created are increasing substantially. 2.5 Networking Network is a business activity where you create a set of ties with several individuals or organisations for purposes beyond the initial reason of contact. Entrepreneurs use these

The importance of setting within Mama Day by Gloria Naylor.

1517 words - 6 pages cultural and much different identity. The setting of a novel and the distinct portrayal of the time, place, and environment of what is occurring are often essential to the understanding of the true essence of a novel. In this case, the element of the setting is most important to the novel as a whole, establishing the grounds for the several diverse perspectives and "realities" for Naylor's significant characters. The importance of setting within Mama

The importance of effective communication within Doctor- Patient relationships.

2521 words - 11 pages professional, then the effects can be detrimental. This is due to primarily working with others within the multidisciplinary team, whereby having good communication and interpersonal skills are of the upmost importance, as information can so easily be misinterpreted, which can then lead to a break down in trust between patient and Doctor, potentially compromising treatment. If I was to encounter similar circumstances within the healthcare

The Importance of Raising Self-Efficacy Within Students

1065 words - 4 pages Throughout our lives our surroundings and experiences influence who we are and who we are to become. The values and beliefs installed in us through these interactions with our environment can have a positive or negative affect on the type of citizen we are and ultimately our contribution to society. Major contributing influences on ones values and beliefs are interactions that occur within ones family unit as well as experiences within

The Importance of Ethics in Business

1471 words - 6 pages business relationships. These characteristics are the bases for our integrity. This in term identifies our character and is the basis and guidelines for how we are judged and viewed among our peers. I also believe that it is very important for an employer to hire people who possess a positive work ethics and are fanatics of integrity. This in term leads to them being fanatics of good customer service. A strong deterrent to unethical behavior

The Importance of Recognition in Business

635 words - 3 pages Today, employees' turnover and absences rates from work become a major problem in business society. Therefore, motivate an unmotivated employee is very important factor to keep the organization moving in the right direction. Some people may ask, "What is the best way to motivating and rewarding today's employees?" Employees can be motivating a lot of ways such as job itself and recognition. There are hundred of small things you can do to provide

Rights of Victims and Witness within the Military Justice System

2025 words - 8 pages circuit television system will be used to transmit the child's testimony from the courtroom to the location of the accused. A one-way closed circuit television system may be used if deemed necessary by the military judge. The accused will also be provided private, contemporaneous communication with his counsel.Additionally during any court proceedings within the DON, convening authorities should provide a private, waiting area out of the sight and

Similar Essays

Investigating The Implementation Of Magnetic Access Control Card Security System Within The Swaziland College Of Technology Community

1428 words - 6 pages locking mechanism has to be replaced which costs the college dearly as several locking points are replaced each year. This research seeks to investigate the implementation of a magnetic access control card security system within the SCOT community. It aims is to lessen the problems of security experienced in the college. Research Motivation The motivation behind this research project is driven by the number of shortfalls of the security system

The Importance Of Birth Control Essay

1369 words - 5 pages control is often used right after a woman has a baby to avoid having another baby to soon. Other women use it to avoid becoming pregnant all together. There are many methods of birth control and each of our bodies work in different ways. To find the best method you should explore your options. Depending on your needs you should choose the one that fits you best and won’t take too much of your time. Every woman is particular in what they’re looking

The Importance Of Cultural Diversity Within Organizations

2167 words - 9 pages they also value the groups within their company. They exemplify the meaning of what the term ‘multicultural structure’ means. Both organizations show what elements it takes to be successful, and how the multicultural integration ingredient can bring further success. In conclusion, the importance of cultural diversity within an organization starts with implementing a multicultural structure that brings together various valued cultures. The

The Importance Of E Business Essay

1046 words - 4 pages easy, many fail. Companies must realize the importance of e-intelligence in running their business smoothly. E-intelligence is a system that provides e-business information, applications, and services to internal business users, trading partners, and corporate clients. The system is fast and easy, and it provides companies with vital information on the consumers' needs. E-intelligence offers a number of business benefits: 1.   &nbsp