Financial Education - Tips on the transactions that are properly recorded for the purpose of internal accounting control

in hive-175254 •  5 months ago 

I have already emphasized that internal accounting control comprises the organizational plan and all the methods and procedures whose mission is to safeguard the assets and the reliability of the financial records.

Source ( Ceriniandassociates )

Among the elements of internal accounting control, they must be designed in such a way as to provide reasonable assurance that operations are carried out in accordance with management's authorizations.

Transactions are properly recorded in order to: (a) Facilitate the preparation of financial statements in accordance with International Accounting Standards. (b) Safeguard assets. (c) Make available sufficient and timely information for decision making.

Access to assets is allowed only in accordance with management's authorizations, the accounting existence of assets is periodically compared with the physical existence and timely action is taken in case of differences, ensuring the quality of accounting information to be used as a basis for decisions to be taken.

Source ( Yourbusiness )

In closing, among the general characteristics of internal control, it is characterized as a process, that is, a means to an end and not an end in itself, since it is carried out by people acting at all levels and is not only a matter of organizational and procedural manuals.

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