Tuesday, August 18, 2009

Chapter 23

1. The meaning of internal control and internal check

Internal control- Process designed and effected by management to provide reasonable assurance about the achievement of the entity;s objectives with regard to :
-reliability of financial reporting
-effectiveness and efficiency of operations
-compliance with applicable laws and regulations

Internal check - element of internal control, concerned with ensureing that no single task is executed from start to finish by only one person. Each individual's work is subject to an independent check by another person in the course of that other person's duties

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