Internal Control Research

To critically analyze the To mensurate the importance of having inbred checker procedures deep down The Bar slang Centre Aims To investigate the physical body of different knowledgeable observe the hang procedures employ in spite of appearance The Bar adopt Centre To gain knowledge of how the different native visit procedures help in effect(p) the business against larceny and peculation etc. entropy appealingness In order to carry show up my research on Internal cracks within The Bargain Centre Supermarket I consume observed everyplace a effect of term, duration I was employed recess time, the different type of Internal project procedures set place.I overhear also interviewed the owner, and both (2) managers and also three (3) employees to get their views on the Internal Control that atomic number 18 realised within the business A thirdhand method that was also incorporated into this Internal Assessment (I. A) was the use of the internet to gain general info about internal control systems. I have elect the use of interviews to gather my knowledge because it allowed me to get more in depth in fashionation and allowed me to dig deeper and get more information that was really needed to complete the report. ? Data Analysis According to www. liffnotes. com Internal Control is the process designed to ensure dependable financial reporting, effective and efficient operations, and accord with applicable laws and regulations. Safeguarding assets against theft and unauthorized use, acquisition, or disposal is also part of internal control. Internal Control principles sens be sub divided into a proceeds of categories, a few burning(prenominal) ones ar ? Segregation of duties this requires that different individuals should be stipulate different duties, rather than one soulfulness be in charge of everything, as to reduce theft.For grammatical case the immediate paymentiers of a supermarket are not responsible for checking the mone y in their cash register. ?Establishing responsibilities helps to ensure that all family activities adhere to guidelines unless other course of challenge is specified by a manager. For example there is a specific impairment list that has the value of every event with a store, only the manager can give authorization to change the price of a specific percentage point. ?Documentation provides induction that financial statements are accurate and makes it accomplishable to double check bailiwick.All records of sale and purchases should be kept safe and documented accordingly. ? visible control this should provide proper resistance of companys assets. Examples of physical controls are having fire proof safes and vaults to store cash before taking it to the bank contract a safety deposit knock for important papers like patronage deeds and insurance policies having locked warehouse for inventories or bourgeon fencing company station controlling computer facilities with a pul l back key which is access only by authorized personnel ?Mechanical control improve accuracy and reliability of accounting system information.These can come in the form of cash registers in shops, gasoline pumps in gas/petrol station and time clocks which employees use to show when they stupefy at work. ?Electronic control may be in the form of electronic burglar dismay system, television cameras to proctor thefts, as well as tags which moldiness be removed or deactivated when the item is purchased or else they will trigger an alarm when the customer leaves the premises without having paid for the item. ? nonsymbiotic internal verification 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 kind assets, because of this it is made one of the prime home run for theft. The business must(prenominal) there for have ways to protect inventory/stock from shop lifting f rom customers or even embezzlement by employees. A few ways to achieve this would be Use of inspection cameras Limiting access to store room and using physical control such(prenominal) as locks or vault to secure inventory/stock Using modify tags on goods, which if not detached by sales clerk would trigger alarm, as to detour customers from shop lifting.Internal Controls over Accounts due 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 easily be converted into cash) should not be in charge of accounts receivable records, as to calumniate fraud or theft. Records of names of creditors must be recorded and kept safe, while cash disbursements should be made quick and whenever possible.