Question

What are internal controls? Provide examples.

Answer 1

Internal controls are the control management techniques which are adopted by the management in order to control the internal processes of the organisation so that it can help them in establishment of a fair procedure, and possibility of fraudulent activities can also be regularised and minimise to a maximum extent.

internal control is a combination of all such processes which are undertaken by the management in order to minimise the improper techniques inappropriation and theft and embezzlement of the management and it will be helpful in fair disclosure and transparency of the management through interlinking of various procedures.

Bank reconciliation statement in which the passbook and cashbook are regularly monitored and matched with one another is one example of internal control.