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Monday, June 27, 2016

5 Simple Tips To Success With Internal Control And Management Relationships

The management is the one in charge of making the system for internal control. 

  Internal control is the policies that a management puts to action to make sure that the financial information is reliable. 

 This is the process that the management takes to protect their assets.

It also confirms that the employees have conformed to legal requirements so that they will do the best job possibly for the company. 

Since the managers are the ones in charged of the structure of a business they must report their goals and progress to the “Report Management” of a company’s annual report to stockholders.

To be successful with internal control, management uses five parts of internal control. 

They are: Control environment, risk assessment, information and communication, control activities, and monitoring.   

Control environment deals with the overall attitude, and actions of a management system. 

It also includes the management ethics, integrity, and philosophy.

The employees must also be properly trained and very knowledgeable in the field their participating in.

The risk assessment is the analysis of the risk of an environment and how to monitor them.

These include screening out thieves in a retail store, or employees that are likely to steal from a company.

Next, information and communication correlates to the accounting system by establishing management, and reporting a company’s transactions.

 Control activities are the restraints that management puts in place to make sure that instructions are properly carried out.

 Lastly, monitoring involves the periodic assessment to make sure that all policies are enforced in the Organization.

Have a wonderful day.
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