Internal controls of accounting are an essential
business function for a growth-oriented organization, and include the
elements of risk assessment, information communications and even
employees' roles and responsibilities. Internal controls of accounting
systems are designed to protect a company from fraud, abuse and
inaccurate data recording and help organizations keep track of
essential financial activities. Internal controls of accounting provide a
streamlined solution for organizing all accounting procedures and
ensuring that the accounting cycle is completed consistently and
successfully. Implementing a formal Accounting Procedures Manual
for the organization allows the financial department to facilitate
several processes and maintain rigorous standards. Internal controls
also allow organizations to keep detailed records, manage and
organize important financial transactions and set a high standard for
the organization's financial management structure and protocols. A
well-implemented system also reduces the risk of accounting errors
and abuse. A well-implemented controls system allows a company's
financial managers to regulate and streamline all functions of the
accounting department. Internal controls of accounting can be set up
for every area to track deposits, monitor check handling, keep track
of creditor accounts, and even assess budgets and financial statements
on an ongoing basis. Setting up an effective accounting system to
monitor accounting reports, analyze records and protect sensitive
financial information also can help a company set clear goals and
make accurate projections. Creating efficient accounting processes
allows an organization to set specific policies and protocols on
accounting procedures, and reach its financial objectives on a regular
basis. Internal accounting controls can help keep track of such areas
as cash-receipt recording, payroll management, appropriate recording
of grants and gifts, cash disbursements by authorized personnel, and
the recording of assets. These systems also can take into account any
government regulations and requirements for financial reporting.
[1] Aderibigbe P., (2001). Pedagogy of the Probe Panel and Auditing, The
Nigerian Accountant July/September, pp. 33-36
[2] Adewunmi W., (1998). Ethics in the Financial Services Business, The
Chartered Institute of Bankers of Nigeria, Lagos.
[3] Adewunmi W., (2002). Ethics in Professional Practices in Nigeria,
Lagos: Association of Professional Bodies in Nigeria.
[4] Afemikhe S. S. O., (2003). The Pursuit of Value for Money, Ibadan:
Spectrum Books Limited.
[5] Ajaero C., (2004). Leaders on the Rise Ezekwesili: Contracts Cop,
Newswatch Monday November 1.
[6] Akinyelure P. A., (2001). Executorship, Trusteeship, Bankruptcy Law
and Accounts, Lagos. PAL Ventures & Publications.
[7] Bagley C. E., (1995). Managers and the Legal Environment: Strategies
for the 21Century, New York: West Publishing Company.
[8] Cameron, J.B, C. J. Woelfel and J.W. Pattillo, (1979). Advanced
Accounting Theory & Practice, Boston: Houghton Mifflin Company.
[9] Cmnd 7845 (1980). The Role of the Comptroller and Auditor-General,
London: HMSO Comptroller General of the United States (1972)
"Standards for Audit of Governmental Organizations, Programs,
Activities and Functions", Washington D. C. United States: General
Accounting Office.
[10] Daniel G. I., (1999). Public Sector Accounting, Zaria: Ahmadu Bello
University Press.
[11] Ekaette U., (2001). How we run Nigeria, Excerpts from the Lecture
delivered at the Seminar Executive Course 23 at the National Institute
for Policy and Strategic Studies, Kuru, Jos in October.
[12] Elegido J. M., (1996). Fundamentals of Business Ethics, A Developing
Country Perspective, Lagos: Spectrum Books Limited.
[13] Glautier M.W.E. and B. Underdown, (2000), Accounting Theory and
Practice, New York: John Wiley & Sons.
[14] Hay L. E., (1980). Accounting for Government and Non-Profit Entities,
6th Edition Homewood Illinois: Richard Irwin Inc.
[15] Helmkamp J.G, L. F. Imdieke and R. E. Smith, (1986). Principles of
Accouting, New York: John Wiley & Sons.
[16] Inanga E. L. and C. A. Ajayi, (2000). Accountancy for Bankers, The
Chartered Institute of Bankers of Nigeria, Lagos. International
Accounting Standard Committee, IAS 1 - 41, IFRS 1 - 5.
[17] Johnson I. E., (1999). Public Sector Accounting and Financial Control,
Lagos: Financial Training Nigeria.
[18] Maurice J., (1996). Accounting Ethics, London: Pitman Publishing.
[1] Aderibigbe P., (2001). Pedagogy of the Probe Panel and Auditing, The
Nigerian Accountant July/September, pp. 33-36
[2] Adewunmi W., (1998). Ethics in the Financial Services Business, The
Chartered Institute of Bankers of Nigeria, Lagos.
[3] Adewunmi W., (2002). Ethics in Professional Practices in Nigeria,
Lagos: Association of Professional Bodies in Nigeria.
[4] Afemikhe S. S. O., (2003). The Pursuit of Value for Money, Ibadan:
Spectrum Books Limited.
[5] Ajaero C., (2004). Leaders on the Rise Ezekwesili: Contracts Cop,
Newswatch Monday November 1.
[6] Akinyelure P. A., (2001). Executorship, Trusteeship, Bankruptcy Law
and Accounts, Lagos. PAL Ventures & Publications.
[7] Bagley C. E., (1995). Managers and the Legal Environment: Strategies
for the 21Century, New York: West Publishing Company.
[8] Cameron, J.B, C. J. Woelfel and J.W. Pattillo, (1979). Advanced
Accounting Theory & Practice, Boston: Houghton Mifflin Company.
[9] Cmnd 7845 (1980). The Role of the Comptroller and Auditor-General,
London: HMSO Comptroller General of the United States (1972)
"Standards for Audit of Governmental Organizations, Programs,
Activities and Functions", Washington D. C. United States: General
Accounting Office.
[10] Daniel G. I., (1999). Public Sector Accounting, Zaria: Ahmadu Bello
University Press.
[11] Ekaette U., (2001). How we run Nigeria, Excerpts from the Lecture
delivered at the Seminar Executive Course 23 at the National Institute
for Policy and Strategic Studies, Kuru, Jos in October.
[12] Elegido J. M., (1996). Fundamentals of Business Ethics, A Developing
Country Perspective, Lagos: Spectrum Books Limited.
[13] Glautier M.W.E. and B. Underdown, (2000), Accounting Theory and
Practice, New York: John Wiley & Sons.
[14] Hay L. E., (1980). Accounting for Government and Non-Profit Entities,
6th Edition Homewood Illinois: Richard Irwin Inc.
[15] Helmkamp J.G, L. F. Imdieke and R. E. Smith, (1986). Principles of
Accouting, New York: John Wiley & Sons.
[16] Inanga E. L. and C. A. Ajayi, (2000). Accountancy for Bankers, The
Chartered Institute of Bankers of Nigeria, Lagos. International
Accounting Standard Committee, IAS 1 - 41, IFRS 1 - 5.
[17] Johnson I. E., (1999). Public Sector Accounting and Financial Control,
Lagos: Financial Training Nigeria.
[18] Maurice J., (1996). Accounting Ethics, London: Pitman Publishing.
@article{"International Journal of Business, Human and Social Sciences:51181", author = "Alireza Azimi Sani and Shahram Chaharmahalie", title = "Internal Accounting Controls", abstract = "Internal controls of accounting are an essential
business function for a growth-oriented organization, and include the
elements of risk assessment, information communications and even
employees' roles and responsibilities. Internal controls of accounting
systems are designed to protect a company from fraud, abuse and
inaccurate data recording and help organizations keep track of
essential financial activities. Internal controls of accounting provide a
streamlined solution for organizing all accounting procedures and
ensuring that the accounting cycle is completed consistently and
successfully. Implementing a formal Accounting Procedures Manual
for the organization allows the financial department to facilitate
several processes and maintain rigorous standards. Internal controls
also allow organizations to keep detailed records, manage and
organize important financial transactions and set a high standard for
the organization's financial management structure and protocols. A
well-implemented system also reduces the risk of accounting errors
and abuse. A well-implemented controls system allows a company's
financial managers to regulate and streamline all functions of the
accounting department. Internal controls of accounting can be set up
for every area to track deposits, monitor check handling, keep track
of creditor accounts, and even assess budgets and financial statements
on an ongoing basis. Setting up an effective accounting system to
monitor accounting reports, analyze records and protect sensitive
financial information also can help a company set clear goals and
make accurate projections. Creating efficient accounting processes
allows an organization to set specific policies and protocols on
accounting procedures, and reach its financial objectives on a regular
basis. Internal accounting controls can help keep track of such areas
as cash-receipt recording, payroll management, appropriate recording
of grants and gifts, cash disbursements by authorized personnel, and
the recording of assets. These systems also can take into account any
government regulations and requirements for financial reporting.", keywords = "Internal controls, risk assessment, financial
management.", volume = "6", number = "2", pages = "177-4", }