INTERNAL CONTROL

INTERNAL CONTROL

It is defined as establishment of policies and procedures by the management to achieve the management objectives. It is the management who is responsible to see that proper policies and procedures are being employed in the organisation and also to regularly monitoring the same to avoid any fraudulent activities within the organization.

Generally policies and procedures are for

  1. 1.       Finance and Accounts Department
  2. 2.       Human Resource Department
  3. 3.       IT Department
  4. 4.       Administration Department
  5. 5.       Production Department

Internal Audit or External Audit should regularly audit or verify the various policies in the organisation and prepare action oriented reports for Board of Directors for taking managerial decision for updating various policies and procedures

Budget and Budgetary control system also ensures effective control on various activities. Variance analysis and forecasting analysis will also help to achieve this

 

 

 

 

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