Question

1. How would you develop a system of internal controls for your organization?

2. What specific policies would you put in place? What areas of the organization would be covered?

3. How would you install a process of review and enforcement? who would be involved?

4. What would you use as a reporting approach to senior leadership and the board of Directors?

Answer 1

1. I would use the technique of benchmarking inorder to develop internal controls for an organisation because is stands the best possible and fastest means and lowest cost method to develop such controls rather than going and reviewing each and every department their needs and all I will select the industry best and benchmark with it.
2. I will put such policies which best suits my organisation and will result in reduction of errors and frauds and make reliable. Every corner of the company would be covered and an overall development of controls will be made.
3. I will recruit an internal audit review team which works along with the administration of the company which involves certified professionals, so that any concealed error could be detected.
4. I will explain everything to the management in a detailed and convincing manner explaining them the need and importance of such internal controls.