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.
class="csF1C17CF6">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:
Safeguard misappropriation
Control over sale and purchase
Financial control
Deciding Employees’ remuneration
Deciding capital expenditure and to keep a eye on it.
To control inventory
To control investment.
Objectives of internal control:
Safeguard its assets
Check the reliability of its accounting data
To promote operational efficiency
To encourage adherence to prescribed managerial policies.
Expected questions:
What is Internal control?( 2 marker/5 marker)
Scope of Internal Control.
Features of Internal control
Objectives of Internal control.
CGPCS Notes brings Prelims and Mains programs for CGPCS Prelims and CGPCS Mains Exam preparation. Various Programs initiated by CGPCS Notes are as follows:-