Question

Explain the characteristics of internal control

Answer 1

Explanation:

Internal Control comprises of the plan of the organization and all the co-ordinate methods and measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data to promote operational efficiency and to encourage adherence to prescribed managerial policies.

Characteristics of Internal Control

Following are the main characteristics of Internal Control.

1. Competent and trustworthy personnel
2. Records, Financial and other Organization plan
3. Organizational plans
4. Segregation of duties
5. Supervision
6. Authorization
7. Sound practice
8. Internal Audit
9. Arithmetic and accounting controls