Internal Control (Grade 10 NSC Matric Accounting): Flashcards
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Internal control definition
Internal control definition
Measures to exercise authority & maximise profit
Who has responsibility for internal control?
Who has responsibility for internal control?
Every single employee in the business
Control process: Step 1
Control process: Step 1
Decide on objectives (short-term & long-term)
Control process: Step 2
Control process: Step 2
Gather information on strengths & shortcomings
Control process: Step 3
Control process: Step 3
Analyse the information
Control process: Step 4
Control process: Step 4
Act against shortcomings (take corrective action)
Why are objectives essential in control?
Why are objectives essential in control?
Can't measure success or identify problems without them
How internal control protects assets
How internal control protects assets
Prevents theft, fraud, and wastage
How internal control improves accuracy
How internal control improves accuracy
Ensures financial records are reliable
How internal control maximises profit
How internal control maximises profit
Reduces costs and increases revenue