Internal Control Research

To critically prove the To evaluate the importance of having Internal catch procedures in spite of appearance The peck Centre Aims To investigate the number of distinct intrinsic control procedures use upd within The Bargain Centre To gain knowledge of how the una interchangeable home(a) control procedures help secure the backing against thievery and embezzlement etc. Data collection In order to carry out my research on Internal Controls within The Bargain Centre Supermarket I start out observed over a menses of time, date I was employed small-arm time, the different type of Internal Control procedures set place.I have also interviewed the owner, and two (2) managers and also three (3) employees to compress their views on the Internal Control that be effected within the business A secondary order that was also incorporated into this Internal Assessment (I. A) was the use of the internet to gain general information to the highest degree internal control systems. I have elect the use of interviews to gather my information because it allowed me to lend much in depth information and allowed me to dig deeper and get more information that was really needed to sleep together the report. ? Data Analysis According to www. liffnotes. com Internal Control is the process designed to check reliable fiscal reporting, effective and efficient operations, and compliance with applicable laws and regulations. Safeguarding assets against stealing and unauthorized use, acquisition, or disposal is also part of internal control. Internal Control principles can be sub divided into a number of categories, a few important stars are ? Segregation of duties this requires that different individuals should be assign different duties, rather than one person be in charge of everything, as to reduce theft.For horizontalt the hard cashiers of a supermarket are not responsible for checking the money in their cash register. ?Establishing responsibilities helps to underwrite that all company activities adhere to guidelines unless other human body of action is specified by a manager. For example there is a specific price amount that has the price of every item with a store, whole the manager can give authorization to sort the price of a specific item. ?Documentation provides secernate that financial statements are accurate and makes it possible to figure of speech check work.All records of sale and purchases should be kept hygienic(p) and documented accordingly. ?Physical control this should provide comely cheerion of companys assets. Examples of personal controls are having fire proof safes and hurdles to store cash forrader taking it to the bank renting a preventative deposit box for important papers like title deeds and insurance policies having locked warehouse for inventories or stock fencing company property peremptory computer facilities with a pass key which is inlet only by authorized personnel ? mechanical control impr ove accuracy and reliability of method of accounting information.These can come in the form of cash registers in computer storages, gasoline pumps in gas/ throttle station and time clocks which employees use to fate when they arrive at work. ?Electronic control may be in the form of electronic footpad depress system, television cameras to monitor thefts, as well as tags which must be removed or deactivated when the item is purchased or else they will trigger an alarm when the customer leaves the premises without having paid for the item. ?Independent internal verification this is when an employee helps check the work of another to ensure it was done correctly.Internal Control over Inventory/ behave In many businesses inventory is the most sociable assets, because of this it is made one of the prime target for theft. The business must there for have ship canal to protect inventory/stock from shop lifting from customers or even embezzlement by employees. A few ways to achieve t his would be Use of surveillance cameras limiting access to store rooms and using physical control such as locks or vault to secure inventory/stock Using supersensitive tags on goods, which if not detached by gross sales clerk would trigger alarm, as to detour customers from shop lifting.Internal Controls over Accounts Receivable and Accounts Payable One of the most important principals of internal control is that an employee that has custody over cash (or assets that can easily be converted into cash) should not be in charge of accounts due records, as to minimize fraud or theft. Records of name of creditors must be recorded and kept safe, while cash disbursements should be made quickly and whenever possible.