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Internal Control Effectiveness Overview

The document discusses three key aspects of operations for an organization: efficiency and effectiveness which involves safeguarding assets and managing liabilities, reliability of financial reporting which requires proper record keeping and identifying transactions, and compliance with applicable laws and regulations regarding financial statements and other operational requirements.

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Chester de Guzman
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60 views1 page

Internal Control Effectiveness Overview

The document discusses three key aspects of operations for an organization: efficiency and effectiveness which involves safeguarding assets and managing liabilities, reliability of financial reporting which requires proper record keeping and identifying transactions, and compliance with applicable laws and regulations regarding financial statements and other operational requirements.

Uploaded by

Chester de Guzman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Chester Dominic O.

de Guzman

BSA 4

EFFICIENCY & EFFECTIVENESS OF OPERATIONS

 Safeguarding of assets from inappropriate use or from loss and fraud


 Ensuring that liabilities are identified and managed

RELIABILITY OF FINANCIAL REPORTING

 Maintenance of proper records and processes that generate a flow of timely, relevant
and reliable information from within and outside the organization
 Identification of significant classes of transactions, account balances, and disclosures,
and their relevant assertions

COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

 Compliance with provisions of those laws and regulations generally recognized to have a
direct effect on the determination of material amounts and disclosures in the financial
statements such as tax and pension laws and regulations
 Other laws and regulations that do not have a direct effect on the determination of the
amounts and disclosures in the financial statements, but compliance with which may be
fundamental to the operating aspects of the business, to an entity’s ability to continue
its business, or to avoid material penalties (for example, compliance with the terms of
an operating license, compliance with regulatory solvency requirements, or compliance
with environmental regulations); non-compliance with such laws and regulations may
therefore have a material effect on the financial statements

REFERENCES:

http://www.ecgi.org/codes/documents/kpmg_internal_control_practical_guide.pdf

http://www.aasc.org.ph/downloads/PSA/publications/PDFs/PSA-250-Redrafted.pdf

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