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.
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.
