This is a set of rules and procedures that work to limit the opportunity for employee theft or malfeasance.

Question

Quizplus · Accepted Answer

Internal control refers to the mechanisms, rules, and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent internal fraud or theft. This includes measures like separation of duties, regular audits, code of conduct, and access controls to sensitive information. Internal control is a proactive measure that aims to deter theft, fraud, or misconduct by employees, and to detect and report any irregularities that may occur. Internal audits, tips, and whistle-blowing rewards are complementary tools that can aid in identifying and addressing potential or actual issues with internal control.

This Is a Set of Rules and Procedures That Work