RAS Mains Revision notes/ quick bytes Paper I, Part C: Accounting and Auditing: Internal Control

Revision notes/ quick bytes

Paper I, Part C: Accounting and Auditing: Internal Control

Internal Control:

Internal control comprises of the plan of the organisation and all the coordinate methods and measures adopted within a business to safeguard its measures adopted within a business to safeguard its assets, check the accuracy and reliability of its accounting data to promote operational efficiency and to encourage adherence to prescribed managerial policies.

Characteristics of Internal control:

CROSS-ASIA ( Mnemonics)

C  —–   Competent and trustworthy personnel

R   —–  Records, Financial and other organisation Plan

O —— Organisational Plans

S —– Segregation of duties

S —— Supervision

A —– Authorisation

S—- Sound Practice

I—- Internal Audit

A—- Arithmetic and Accounting Controls

Scope of Internal Control:

1. Safeguard misappropriation
2. Control over sale and purchase
3. Financial control
4. Deciding Employees’ remuneration
5. Deciding capital expenditure and to keep a eye on it.
6. To control inventory
7. To control investment.

Objectives of internal control:

• Safeguard its assets
• Check the reliability of its accounting data
• To
  Join Our Telegram Channel
  132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube