Objectives
of Internal Control
The purpose of internal
audit is to protect the assets so that is why internal auditors keep proper
records of asset. Its purpose is detecting the errors in the accounting
records. These errors are detected by the internal auditors during the whole
year. Its purpose is to detect the frauds in the books of accounts. Its becomes
possible because there is no gap between recording and checking. Its purpose is
to evaluate accounting system. This can be done by comparing the vouchers with
the entries. Internal check system can be evaluated by internal audit. It finds
out weather the staff members are working properly or not. Its purpose is to examine
accounting policies. The internal auditor finds out the weakness and makes
comments on accounting policies. Its purpose is to determine the liabilities of
the employees through internal audit. It is easy to note the negligence of the
employees. Its purpose is to help the management by pointing out the weakness.
It can be used as a tool to correct the situation. It helps an independent
auditor to so that the external auditors can rely on internal auditors and
there is no need of cent percent checking. Its purpose is to provide
suggestions for the improvements of business activities. The internal audit
staff can suggest the ways and means to remove difficulties. Its purpose is to
keep proper control over the business activities. The internal auditor of the
organization can determine the degree of control over the work. Tis purpose is
to find out what weather the statements shows true and fair picture of not. The
purpose of internal audit may be to control the special investigation about any
business matter. Its purpose is to determine the proper use of resources means
that the management is efficient. Its purpose is to review the working of
business the corrective measures can be taken for proper working.
Limitations of Internal control
The limitations of
internal audit are that there may not be proper division of duties. In this
case the auditor is unable to fix the responsibility for negligence. The limitations
of internal audit are that there may be errors in the books of accounts because
of incompetent staff. The purpose of internal audit fails to help the
management because of incompetent staff of the organization. There may be lack
of experience and training. The limitation of internal audit is that the
management may not feel their responsibilities in completing audit formalities.
The shortage of audit staff is an obstacle to get the benefit of internal
audit. The limitations of internal audit starts when there is time to lag
between recording and checking entries. There are many limitations of internal
audit which arise during the working year of the organization and with these
limitations an internal audit could not perform his duty and work in the better
way.
0 comments:
Post a Comment