WHAT ARE THE ADVANTAGES OF EFFECTIVE INTERNAL CONTROL?


ADVANTAGES OF EFFECTIVE INTERNAL CONTROL


An effective internal control system will help an entity achieve the four general objectives of internal control, as hinted in the definition of internal control i.e.:

i.   Promote an ethical, orderly, economical, efficient and effective operations and use of

Organization’s resources;


ii. Safeguard resources against loss due to waste, abuse, theft, mismanagement, errors and fraud;



WHAT ARE THE ADVANTAGES OF EFFECTIVE INTERNAL CONTROL?


 

iii. Promote compliance to laws, regulations, policies and procedures, and ethical values;


iv. Identify risks and develop effective strategies and procedures to control or manage them;


      v.   Fulfilling accountability obligations by maintaining and providing relevant, credible and reliable financial and non-financial data and accurately report financial and non-financial information in a timely manner.

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