Internal Control

Internal Control
Name
Institution Affiliation
Internal Control
Importance of Internal Control
Internal control is a set of policies and procedures that are employed by the management of a company (Brookins, 2018). The policies are put in place to facilitate achieving specific goals which include: safeguard asserts through protecting them from loss through fraud, ensure financial reports are reliable and accurate. Furthermore, internal control policies ensure that a company complies with state or federal laws and regulations that govern and affect their line of operations (James, 2018). It also creates an environment where managers and employees can boost their efficiency and effectiveness in their work to facilitate goal and objective achievement.
Why Internal Control Is Available in a Company
Internal controls are primarily aimed to establish ways in which a company deals with receiving and reporting cash usage, administrative and management tasks. The primary purpose for establishing internal control include setting out the protocol to be followed by employees to bring order and cohesion in the organization (Brookins, 2018). Secondly, it is a measure to curb fraud and theft because through internal audit misallocation of funds can be detected. Third, it facilitates separation of employee’s duties via having system checks. Additionally, internal control helps a business to keep their financial and management data organized (James, 2018). Organized information enable…