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What Are The Types Of Internal Control Systems?

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Roger Clegg Profile
Roger Clegg answered
There are three main types of internal control systems - Detective, Corrective and Preventive. Simply put, an internal control system is a structure which is aimed at providing reasonable assurance that achievement can be reached in the objectives. In more technical and detailed terms, it is a plan that is made to ensure the safety and protection of an organisation's assets, to check the accuracy and reliability of its financial records and data, and a way to ensure operation efficiency is being promoted and prescribed managerial policies are being followed.

Detective controls are designed to find out and discover the different errors or irregularities which may have occurred and thus, can affect the organisation's ability to achieve its objectives.

Corrective controls then work to try and fix the problem which may have arisen. This involves problem solving and lateral thinking.

Preventative controls on the other hand, are what most organisations aim to exhibit and use at all times. This type of control is aimed at preventing any errors or irregularities from occurring which may have negative effects on the organisation.

Effective internal control should be a major component of any business or organisation which is in-built its running and success. It is a vital factor which helps ensure the organisation is on course with its key objectives and goals and it is especially important when figuring out and deciphering what went wrong when problems do arise.

It is important for any organisation to monitor and conduct audits and assessments to ensure your internal controls are both appropriate and effective in helping your organisation determine its main objectives and achieve them successfully.
Anonymous Profile
Anonymous answered
There are 7 types of internal control:-
1. Validity
2. Authorization
3. Completeness
4. Accuracy
5. Segregation of duties
6. Timeliness
7. Safeguarding

Go to this website www2.mercer.edu for further explanation. If you need to know more, probably you can consider taking Certificate of Internal Auditor.
Suhail Ajmal Profile
Suhail Ajmal answered
Internal control system is a system which provides reasonable assurance in the achievement of the objectives. There are three main types of internal control systems.

Detective
Corrective
Preventive

For details about internal control, visit this link
Amen Bukhari Profile
Amen Bukhari answered
Internal control is divided into organization, segregation of duties, physical, approval, accounting and management. Organization concerned with placement of workers on their jobs. Authority and responsible go together. The workers are responsible for their activities. The head of department is responsible for looking after the work of his own department. The segregation of duties is necessary. There are many employees. All aspect of transaction is not completed by one person. The recording of transaction by many persons can reduce the risk of errors and frauds. The division of duties can improve the working of workers.

The physical internal control is desirable to safeguard assets. The access to assets must be limited. The authorized persons can be allowed to examine the assets. The persons may visit the warehouse or they may release the assets through requisition slips. The assets require lockers, iron safe, possession of keys and use of passes for warehouse. All transactions in any business require proper approval of responsible person. The limit for approval may be fixed. The credit recovery officer can prove credit sales. The foreman can approve overtime wages. The purchase of goods can be approved by purchase officer.

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