Every organization is established to attain some preconceived vision, mission and goals, which are cascaded down to objectives meant to be achieved through day-to-day activities of such organization. It is a general belief that the main objective of a business concern is profit maximization. However, profit maximization is a means to achieving business goals/mission. For instance, the mission of an organization could be ‘to help stakeholders build and preserve wealth….’ Having set the mission and goals, the management (i.e. representative of the owners of the business idea) steps in to pool various required resources together to get the business going. Thus, it is the responsibility of such management to ensure that these resources - capital, human e.t.c., are properly allocated and coordinated towards achieving set goals. Therefore, there is need for measures, policies and procedures in place to ensure that the day-to-day activities of the various components of the business organization are geared towards the set objectives, and ultimately towards achieving the mission/goals. DEFINITION (Simplified)
Therefore, Internal Controls are all the measures put in place by the management (Policies and procedures) in order to ensure that: 1.the business of the organization is carried out in an orderly and efficient manner, 2.Assets of the organization are safe guarded
3.Completeness and adequacy of records are secured as far as possible, and 4.Relevant regulatory pronouncements are strictly complied with.
BANK AND INTERNAL CONTROLS
Generally, when Internal Control is mentioned what comes to minds of many people is the ‘person’ i.e. internal auditor e.t.c., whereas Internal Controls, as stated earlier, are those measures, policies and procedures put in place by the management towards attainments of set goals. Therefore, the internal control officers (Internal auditors ) are saddled with the responsibility of...