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What is the importance of internal control? Describe any three types of internal control. |
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Answer» The primary job o internal control is to help management discharge their responsibilities. The nature and extent o control will depend upon business to business. It will also depend upon nature, size and volume o transactions and the policy o the management. Organization: The management must make the organization chart o all the departments. The authorities, responsibilities, reporting to, must be clearly identified; each job must be clearly described and specified. Delegation o power should be in writing with the approval o superiors. Division of duties: The duties among dierent employees must be divided to have an ective control; but in small hotels, the broad division o duties may not be possible. Supervision: The supervisors must authorize/approve the entire transactions o the hotel. All overwriting must be counter signed. The power of the supervisors must be specified in writing to avoid confusion. |
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