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Acct Unit 3 Ip

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Submitted By shante1980
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Unit 3 IP
Shante Patterson
ACCT205
AIU Online
December 1, 2013

The internal control system should be intended to distinguish and prevent deception, mistakes and oversights, and material misstatements; then again it can only provide sensible assurance that the financial statements are at liberty from material misstatements. The best designed internal control system will not avert management override or collusion. The internal controls system is only as good as the management backing behind the system; this comprises training employees and dynamically observing the controls. The cost of applying a specific control should not surpass the probable benefit of the control. On occasion there are no out-of-pocket costs to institute an acceptable control.
Internal control procedures are the duty of the management. Every single control must be assessed based on risk and a cost/benefit inquiry. Several operational low cost procedures can be applied. These control procedures, when in service effectively, will arrange for a sensible assurance that mistakes will be either prohibited or identified. Instances of controls that would have make sure that the prepaid tunings were made would be to gather a check-list of cyclical monthly journal records, than as a part of the financial report evaluation procedure, this check-list ought to be looked over by the management. At each financial statement date, each balance sheet account is resolved; this will guarantee that every single balance is sustained. Settlements should be studied and sanctioned by the management. As a final point every single financial statement date, fluidity analysis should be accomplished by matching the actual results with equally preceding period actual and the budget. Adjustments within a tolerable starting point defined by the management should be considered, clarified and amended as applicable.

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