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The Importance of a Control System Within the Business
Internal controls are methods or procedures adopted in a business to:
-Assist in achieving the businesses' objectives
- Ensure financial information is correct and reliable
- Ensure cooperation with all operational and financial requirements
- Protect its Assets
They are essentially checks and balances within a business. It's objective is to reduce errors, limit financial losses and prevent fraud. They also segregate duties within the company and limit one persons control over an entire area. For example-
never have one person writing, receiving and reconciling your business accounts.
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