Question

internel control？

What physical controls are used to prevent unauthorised changes to the manufacturing costing system?

Answer 1

Physical Security Plan has to be established in the manufacuring concern to ensure unauthorized changes in the mnaufacturing costing system. It is absolutely a part of Internal Control System, that not only ensures proper costing but also helps in preparing fair accounting statements. There are several missions for building a Security Plans. Some of the internal control system actions include:

1. Ensure that the unauthorized personnel would not be able to access the sensitive areas where financial records are kept.
2. Build accountability at each step wherever possible.
3. Protect Confidential information to limited access.
4. Keep the area under survellience where valuable items are stored.