Description
The CEO of your company has an upcoming meeting with the Board of Directors who have expressed concern about internal controls. The CEO has asked you to prepare a memo about internal controls and why they are important to the financial health of your company.
Using 1,000 to 1,500 words, prepare a memo that describes and defines at least four internal control principles. Incorporate a Biblical reference and use at least one peer-reviewed scholarly source in addition to our textbook.
****Please make sure you use resources and APA style formatting. and also use the resource from the text book Wild, J.J., Shaw, K.W., & Chiappetta, B. (2016). Fundamental accounting principles (22nd ed.). New York, NY: McGraw Hill.****
Explanation & Answer
Running Head: INTERNAL CONTROL MEASURES
Internal Control Principles
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INTERNAL CONTROL MEASURES
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Introduction
Internal control refers to a process that ensures that a system fully complies with the
existing rules and regulations, maintains effective financial systems, as well as runs its
operations in an effective manner. Internal control is intended to primarily inhibit the occurrence
of errors or fraud activities that might compromise the institutional financial reports rendering
them inaccurate. Other constituents of internal control entail securing company assets against
unauthorized access, loss, as well as unwarranted acquisition or disposal. Well planned internal
controls are also efficient in determining organizational employees who do not operate to the set
organizational standards (Wild et al., 2016). These control measures are put in place before the
financial reports are issued to investors, creditors, as well as auditors. Internal control principles
are the measures incurred by management to ensure that it meets all its set goals as well as
objectives. The bible strongly discourages against fraud activities in any institution and points
out that although the wealth gained from such activities might be sweet; it is useless in the longrun. Consequently, it is vital for organization to incur the right measure to help detect and
prevent such activities from taking place (Luke16:10-13). These internal control principles are
illustrated below.
Duty Segregation
This idea primarily entails differentiat...
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