Question

analyse the control systems in place in a business

Answer 1

Ans : there are many Internal control system in place in a business , we are discussing few important once:

1. Ensuring that all payments are made through bank exception to few petty expenses to be done in cash. And this petty cash ledger should be maintained separately and audit is being done periodically and even in surprise manner.

2. Inventory management: separation of team which procure the material and which receive it, ao as to ensure that quality and quantity are same in both procurement and receipt.

3. Separation of duties and rotation of jobs so as to ensure no one is in position to take undue advantage of his post.