Question

Comment on any two internal control measures of the risk and audit committee

Answer 1

Internal controls are rules and processes put in place to guarantee that accounting systems remain reliable.

• In accounting accuracy and dependability are critical. Audit committee can't make fully informed financial choices without correct accounting records, thus internal control measures are crucial.
• These are -

1. Standardizing documentation - Standardizing financial transaction records, like invoices, and cost reports, can aid in record keeping consistency throughout time. When looking for a source of a discrepancy using standard document formats might make it easier to analyse previous data.
2. Periodic reconciliation - Accounting reconciliations should be performed on a regular basis to ensure that the balances in the accounting system reflect the balances in accounts maintained by other entities, like banks, suppliers, and credit customers.