internal control

INTERNAL CONTROL

ESSENTIAL REQUISITES OF AN EFFECTIVE INTERNAL CONTROL

1. THERE ARE AVAILABLE REPORTS OF THE PAST, PRESENT AND THE FUTURE

A. Financial reports

i. Balance Sheetii.Income Statementiii.Capital Statementiv.Cash Flow Statementv.Financial Ratios and Analysis

THERE ARE AVAILABLE REPORTS OF THE PAST, PRESENT AND THE FUTURE

B. Present Sales, Expenses and Inventory Reportsi. Daily ii. Weeklyiii.Monthly iv.Quarterly v. Annually*Should be properly substantiated with appropriate documents like deposit slips and receipts.

THERE ARE AVAILABLE REPORTS OF THE PAST, PRESENT AND THE FUTURE

C. Projectionsi. Sales and Expenses Projectionsii. Break-even Analysisiii.Budgeting

2. SET AN EFFECTIVE GUIDELINES, STANDARDS AND POLICIES FOR BOTH THE OPERATION AND FINANCIAL PROCESSES.

2. EXISTING GUIDELINES, STANDARDS AND POLICIES ARE CONSISTENTLY

MONITORED

A. COMPLIANCE REPORTB. AUDIT REPORT

3. THE COMPANY VALUES THE FEEDBACK OF CUSTOMERS AND EMPLOYEES

A. CUSTOMER SATISFACTION REPORT

B. EMPLOYEE EVALUATION