An internal control system is designed to provide reasonable assurance that all the control objectives are being achieved.Required: What purpose does an internal control system serve in an organization

i) In an organization, an internal control system enhances the efficient and orderly running of activities and operations to satisfy the needs of stakeholders.
ii) It ensures adherence to management policies. These policies provide a good framework within which the internal control system operates.
iii) Helps in the safeguarding of company‘s assets. Using physical controls such as lock and key and documentation e.g. fixed asset register, the company‘s assets can be safeguarded from unauthorized individuals.
iv) An internal control system assists in the prevention and detection of fraud and error.
v) It enhances accuracy and completeness of accounting records
vi) Ensures timely preparation of reliable financial information.

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