Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 31113
Internal Accounting Controls

Authors: Alireza Azimi Sani , Shahram Chaharmahalie


Internal controls of accounting are an essential business function for a growth-oriented organization, and include the elements of risk assessment, information communications and even employees' roles and responsibilities. Internal controls of accounting systems are designed to protect a company from fraud, abuse and inaccurate data recording and help organizations keep track of essential financial activities. Internal controls of accounting provide a streamlined solution for organizing all accounting procedures and ensuring that the accounting cycle is completed consistently and successfully. Implementing a formal Accounting Procedures Manual for the organization allows the financial department to facilitate several processes and maintain rigorous standards. Internal controls also allow organizations to keep detailed records, manage and organize important financial transactions and set a high standard for the organization's financial management structure and protocols. A well-implemented system also reduces the risk of accounting errors and abuse. A well-implemented controls system allows a company's financial managers to regulate and streamline all functions of the accounting department. Internal controls of accounting can be set up for every area to track deposits, monitor check handling, keep track of creditor accounts, and even assess budgets and financial statements on an ongoing basis. Setting up an effective accounting system to monitor accounting reports, analyze records and protect sensitive financial information also can help a company set clear goals and make accurate projections. Creating efficient accounting processes allows an organization to set specific policies and protocols on accounting procedures, and reach its financial objectives on a regular basis. Internal accounting controls can help keep track of such areas as cash-receipt recording, payroll management, appropriate recording of grants and gifts, cash disbursements by authorized personnel, and the recording of assets. These systems also can take into account any government regulations and requirements for financial reporting.

Keywords: Risk Assessment, internal controls, financial management

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1731


[1] Aderibigbe P., (2001). Pedagogy of the Probe Panel and Auditing, The Nigerian Accountant July/September, pp. 33-36
[2] Adewunmi W., (1998). Ethics in the Financial Services Business, The Chartered Institute of Bankers of Nigeria, Lagos.
[3] Adewunmi W., (2002). Ethics in Professional Practices in Nigeria, Lagos: Association of Professional Bodies in Nigeria.
[4] Afemikhe S. S. O., (2003). The Pursuit of Value for Money, Ibadan: Spectrum Books Limited.
[5] Ajaero C., (2004). Leaders on the Rise Ezekwesili: Contracts Cop, Newswatch Monday November 1.
[6] Akinyelure P. A., (2001). Executorship, Trusteeship, Bankruptcy Law and Accounts, Lagos. PAL Ventures & Publications.
[7] Bagley C. E., (1995). Managers and the Legal Environment: Strategies for the 21Century, New York: West Publishing Company.
[8] Cameron, J.B, C. J. Woelfel and J.W. Pattillo, (1979). Advanced Accounting Theory & Practice, Boston: Houghton Mifflin Company.
[9] Cmnd 7845 (1980). The Role of the Comptroller and Auditor-General, London: HMSO Comptroller General of the United States (1972) "Standards for Audit of Governmental Organizations, Programs, Activities and Functions", Washington D. C. United States: General Accounting Office.
[10] Daniel G. I., (1999). Public Sector Accounting, Zaria: Ahmadu Bello University Press.
[11] Ekaette U., (2001). How we run Nigeria, Excerpts from the Lecture delivered at the Seminar Executive Course 23 at the National Institute for Policy and Strategic Studies, Kuru, Jos in October.
[12] Elegido J. M., (1996). Fundamentals of Business Ethics, A Developing Country Perspective, Lagos: Spectrum Books Limited.
[13] Glautier M.W.E. and B. Underdown, (2000), Accounting Theory and Practice, New York: John Wiley & Sons.
[14] Hay L. E., (1980). Accounting for Government and Non-Profit Entities, 6th Edition Homewood Illinois: Richard Irwin Inc.
[15] Helmkamp J.G, L. F. Imdieke and R. E. Smith, (1986). Principles of Accouting, New York: John Wiley & Sons.
[16] Inanga E. L. and C. A. Ajayi, (2000). Accountancy for Bankers, The Chartered Institute of Bankers of Nigeria, Lagos. International Accounting Standard Committee, IAS 1 - 41, IFRS 1 - 5.
[17] Johnson I. E., (1999). Public Sector Accounting and Financial Control, Lagos: Financial Training Nigeria.
[18] Maurice J., (1996). Accounting Ethics, London: Pitman Publishing.