:lock:Internal controls protect assets, operations, and accounting data.
:memo:Key control procedures include establishing a document trail and assigning responsibilities.
:busts_in_silhouette:Segregating duties and physically protecting assets prevent theft and fraud.
:scroll:Establishing policies and procedures ensures consistent and compliant operations.
:chart_with_upwards_trend:Reviewing operating performance helps identify weaknesses and recommend improvements.
What are internal controls?
—Internal controls are processes put in place to protect assets, promote effective operations, and ensure accurate accounting and record-keeping.
Why are internal controls important?
—Internal controls help prevent and detect errors, irregularities, and fraud, safeguard assets, and ensure reliable accounting data for decision-making.
What are key control procedures?
—Key control procedures include establishing a document trail, assigning responsibilities, segregating duties, physically protecting assets, establishing policies and procedures, and reviewing operating performance.
How do internal controls prevent theft and fraud?
—By segregating duties and physically protecting assets, internal controls minimize opportunities for unauthorized access and misuse.
Why is reviewing operating performance important?
—Reviewing operating performance helps identify weaknesses in internal controls and recommend corrective actions for more effective and efficient operations.
00:00Internal controls are processes put in place to protect assets, promote effective operations, and ensure accurate accounting and record-keeping.
00:18Key control procedures include establishing a document trail and assigning responsibilities.
01:02Segregating duties and physically protecting assets prevent theft and fraud.
03:33Establishing policies and procedures ensures consistent and compliant operations.
05:00Reviewing operating performance helps identify weaknesses and recommend improvements.
