Internal controls

many ideas as you can for the types of controls

you may find in operation in a corner shop, using the above definitions of a control to help.

shop include the following:
• CCTV over the till to help

prevent theft;
• high value goods kept behind the till;
• cash banked regularly rather than keeping it on premises;
• reconciliation of till roll to takings;
• regular stock takes;
• regular bank reconciliation, reviewed by manager;
• purchases authorised by manager before order being placed;
• check stock levels before ordering to prevent over-ordering;
• check quantity and quality of deliveries before accepting;
• matching of purchase orders to delivery documents to ensure orders received.

and management functions and the attitudes, awareness and actions of

those charged with governance and management concerning the entity’s internal control and its importance in the entity.

carried out within the system to prevent and detect errors.
Comparison

Controls
Authorisation
Reconciliations
Computer Controls
Arithmetical Controls
Physical Controls
Segregation of Duties

management override;
the cost/time to implement the controls may outweigh the

benefit of following them so the controls are ignored;
it may be impossible to design a control for a one-off transaction e.g. determining a provision for a court case. Controls work best in systems where there is a high volume of routine transactions.