Internal Control

?

Revision notes/ quick bytes

Paper I, Part C: Accounting and Auditing: Internal Control

 

Internal Control:

Internal control comprises of the plan of the organisation and all the coordinate methods and measures adopted within a business to safeguard its measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data to promote operational efficiency and to encourage adherence to prescribed managerial policies.

 

Characteristics of Internal control:

CROSS-ASIA ( Mnemonics)

C  —–   Competent and trustworthy personnel

R   —–  Records, Financial and other organisation Plan

O —— Organisational Plans

S —– Segregation of duties

S —— Supervision

A —– Authorisation

S—- Sound Practice

I—- Internal Audit

A—- Arithmetic and Accounting Controls

 

Scope of Internal Control:

  1. Safeguard misappropriation
  2. Control over sale and purchase
  3. Financial control
  4. Deciding Employees’ remuneration
  5. Deciding capital expenditure and to keep a eye on it.
  6. To control inventory
  7. To control investment.

 

Objectives of internal control:

  • Safeguard its assets
  • Check the reliability of its accounting data
  • To promote operational efficiency
  • To encourage adherence to prescribed managerial policies.

 

 

Expected questions:

  1. What is Internal control?( 2 marker/5 marker)
  2. Scope of Internal Control.
  3. Features of Internal control
  4. Objectives of Internal control.

 


JPSC Notes brings Prelims and Mains programs for JPSC Prelims and JPSC Mains Exam preparation. Various Programs initiated by JPSC Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––

Leave a Comment