Institute of Accounts, Business and Finance
Business Administration Department
THE INTERNAL ACCOUNTING CONTROL SYSTEM
OF THE GENERIC DRUGSTORE BUSINESS
As partial fulfillment for
Second Semester 2009-2010
Delector, Janice G.
Domiquel, April G.
Figuerrez, Leizel Anne F.
Nuguid, Abigail G.
Patawaran, Marmina F.
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. Effective Internal Control also reduces the possibility of significant errors and irregularities and assists in their timely detection when they do occur. This study shall focus only on the internal accounting control practices of the business.
As stated above, internal control can be viewed as a special system installed within a business entity. It is put there primarily on the basis of achieving management objectives related to the following:
• Safeguarding assets
• Assurance against the incurrence of improper liabilities
• Assurance of the accuracy and reliability of accounting data
• Minimizing the temptation of fraud
Ideally, internal accounting control system is established to discourage and prevent fraud. This comes from the popular saying that prevention is always better than cure. However, authors on the subject observe that no matter how competent a device may be, no matter how foolproof one thinks of the internal control system is, there will always be the persistence of criminal and malicious intents of other people whether on the side of the employees and/or on the side of the management.
In this study, only the internal accounting... [continues]
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"The Internal Accounting Control System of the Generic Drugstore Business the Internal Accounting Control System of the Generic Drugstore Business." StudyMode.com. 02, 2012. Accessed 02, 2012. http://www.studymode.com/essays/The-Internal-Accounting-Control-System-Of-916495.html.