Question

Why do you think clearly defined policies and procedures are important for Internal Control perspective? Please strengthen your answer with examples

Answer 1

Answer)

Clearly defined policies and procedures are very important for internal control perspective as it says the rules that an employee must follow to accomplish his work or such controls track his movement that management or those charged with governance can trace his ethical behaviour during his work.

Here,for example Mr.X want to log into the organization server to perform his work,he need to entire his log in Id and password so that system track what work he performed,the amendments he made into the existing data etc.If he perform any data manipulation then it can be knowned by management immediately.

Similarly having security cameras at places where inventory being kept can prevent inventory from being stolen.