What is the purpose of internal control procedures within a

What is the purpose of internal control procedures within a business? Do the procedures have any limitations? Explain.

Solution

Explanation:

Every business should have control their operational and financial objectives. Internal control provides measures that make sure the way business being handled and control operational goals.

By creating internal control procedure organisation creating a standard that all staff and company should follow and work according those standards. As this standards will maintain the work process and working style of employees and employee will follow those guidelines and work routinely.

Through this internal control system business owner will maintain it\'s important information within the organisation and reduce the leak of essential information. As employee have to follow certain guidelines and maintain those standards. Internal control procedure will give every employee separate work and they have to maintain those standard and cannot share those information thus information will be secret through our work get done.

Limitations:

In organisation if more than on every employee will create a scandal and try to cheat they will eventually succeed. The group of employee will share information inter relatively and thus information will get distributed among this group of employees.