Saturday, March 2, 2019
Internal Control Research
To critically analyze the To evaluate the importance of having Internal come across procedures within The Bargain gist Aims To investigate the number of different national control procedures used within The Bargain Centre To gain acquaintance of how the different inner control procedures help secure the blood against thi each and embezzlement etc. Data collection In order to unravel out my research on Internal examines within The Bargain Centre Supermarket I have observed everyplace a period of time, maculation I was employed part time, the different type of Internal insure procedures set place.I have also interviewed the owner, and two (2) managers and also three (3) employees to tie their views on the Internal Control that are effected within the business A secondary method that was also incorporated into this Internal sagacity (I. A) was the use of the internet to gain general culture about internal control systems. I have chosen the use of interviews to gather my in salmagundiation because it allowed me to attain more in depth information and allowed me to dig deeper and get more information that was really needed to complete the report. ? Data abstract According to www. liffnotes. com Internal Control is the process designed to ensure trustworthy pecuniary reporting, effective and efficient operations, and compliance with applicable laws and regulations. Safeguarding assets against theft and wildcat use, acquisition, or disposal is also part of internal control. Internal Control principles can be sub divided into a number of categories, a few classical ones are ? Segregation of duties this requires that different individuals should be deal different duties, rather than one person be in guide of everything, as to reduce theft.For use the cashiers of a supermarket are not creditworthy for checking the money in their cash register. ?Establishing responsibilities helps to ensure that all companionship activities flummox to guidelines u nless other course of action is specified by a manager. For example there is a specific price list that has the price of every item with a store, only the manager can give pronouncement to change the price of a specific item. ?Documentation provides evidence that financial statements are accurate and makes it possible to double check work.All records of sale and purchases should be kept safe and documented accordingly. ?Physical control this should provide good protection of companys assets. Examples of physical controls are having fire produce safes and vaults to store cash before taking it to the bank renting a safety deposit box for important papers like entitle deeds and insurance policies having locked warehouse for inventories or stock fencing company property controlling computer facilities with a pass key which is advance only by authorized personnel ?Mechanical control better accuracy and reliability of accounting information.These can come in the form of cash regist ers in shops, gasoline pumps in gas/petrol transmit and time clocks which employees use to show when they arrive at work. ?electronic control may be in the form of electronic marauder alarm system, television cameras to monitor thefts, as well as tags which must be removed or deactivated when the item is purchased or else they will set out an alarm when the customer leaves the premises without having paid for the item. ?Independent internal arrest this is when an employee helps check the work of another to ensure it was done correctly.Internal Control over Inventory/Stock In many businesses inventory is the most cordial assets, because of this it is made one of the prime target for theft. The business must there for have ways to protect inventory/stock from shop lifting from customers or even embezzlement by employees. A few ways to turn over this would be Use of surveillance cameras Limiting access to store populate and using physical control such as locks or vault to secur e inventory/stock Using sensitized tags on goods, which if not detached by sales clerk would trigger alarm, as to detour customers from shop lifting.Internal Controls over Accounts Receivable and Accounts Payable One of the most important principals of internal control is that an employee that has custody over cash (or assets that can advantageously be converted into cash) should not be in charge of accounts due records, as to minimize fraud or theft. Records of names of creditors must be recorded and kept safe, while cash disbursements should be made quick and whenever possible.