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A business practice, policy or procedure established within an organization to create value or minimize risk is called as an internal control. Several people are required to handle a company smoothly and efficiently. A check on all the activities of a company is also important which should be taken care by an important person in the organization. If there is no proper management or check on everybody working for an organization, it may lead to wastage of resources or decrease in overall profit amount. So, the check kept within the organization is referred as an internal control. Internal control as a procedure is important in a company as it affects management, a board of trustees and other workers. It is created to accomplish the goals of a company.
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A subset of internal control is designed to ensure that the information technology(IT), within an organization operates as intended, provides reliable data or information, and organization is in compliance with applicable laws and regulations. With accurate accounting records, managers can make informed financial decisions. Financial report can be made on the basis of accounting reports which should be reliable and correct. Each individual in an organization has to play his part of action. Each employee communicates problems to the higher authority. The top level management accordingly takes the responsibility to design and implement effective internal control within the organization. A company has mainly two auditors, internal auditor and external auditor.
Internal auditor’s job is to see that the measures taken within the company are effective and will help the company to accomplish its goals. Since these is bit complicated and need deep understanding to take any decision, we would suggest you to go with our online service for Internal control assignment help.
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