To critically analyze the
To evaluate the importance of having Internal Control procedures within ‘The Bargain Centre’
To investigate the number of different internal control procedures used within ‘The Bargain Centre’
To gain knowledge of how the different internal control procedures help secure the business against theft and embezzlement etc.
In order to carry out my research on Internal Controls within ‘The Bargain Centre Supermarket’ I have observed over a period of time, while I was employed part time, the different type of Internal Control procedures set place. I have also interviewed the owner, and two (2) managers and also three (3) employees to get their views on the Internal Control that are effected within the business A secondary method that was also incorporated into this Internal Assessment (I.A) was the use of the internet to gain general information about internal control systems. I have chosen the use of interviews to gather my information because it allowed me to get more in depth information and allowed me to dig deeper and get more information that was really needed to complete the report.
According to ‘www.cliffnotes.com’: “Internal Control is the process designed to ensure reliable financial reporting, effective and efficient operations, and compliance with applicable laws and regulations. Safeguarding assets against theft and unauthorized use, acquisition, or disposal is also part of internal control." Internal Control principles can be sub divided into a number of categories, a few important ones are:
Segregation of duties: this requires that different individuals should be assign different duties, rather than one person be in charge of everything, as to reduce theft. For example the cashiers of a supermarket are not responsible for checking the money in their cash register.
Establishing responsibilities: helps to ensure that all company activities...
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