Internal Control

Internal control is the policies and procedures used to safeguard a company's assets and to ensure that accurate and reliable financial statements are the end result of an efficient accounting system.

 Safeguarding assets means protecting a company's assets against loss from unintentional or intentional errors (such as fraud or theft) when you are processing transactions and handling the assets.

Transactions are the basis for a company's operations, and therefore the main focus of internal control. There are four general goals of good internal control. The first is to be sure that the policies of management are followed when transactions are carried out.

 The second goal is to make sure that transactions are recorded when necessary so that financial statements are prepared according to generally accepted accounting principles.

Transactions should be recorded so that specific employees are held accountable for the various assets of the company. Another goal is that only authorized individuals have access to assets. Finally, good internal control will ensure that the accounting records of the company's assets agree with actual existing assets under the company's control.

 When you are establishing good internal control, consideration must be given to authorizing transactions, carrying out transactions, and recording transactions and also to responsibility for the resulting assets.

 Each of these is followed by several principles that help in promoting good internal control.

The owner of a company has the final authority for business transactions, although he may delegate this authority to other people, such as managers.

Good internal control must include policies that indicate who can enter into different kinds of transactions and provide guidelines about other aspects of each transaction, such as price, quantity and timing. For example, general policies may state who is authorized to make sales to customers and who may make purchases for inventory. Such policies assign responsibility for certain transactions to specific employees and help to prevent other employees from making unauthorized sales or purchases.

 You may have more specific policies, such as the selling price of inventory items, or discounts available to certain customers. These policies ensure that similar procedures are followed for similar transactions and minimize the chance of unintentional error.

A well-established set of steps to be followed in carrying out each major type of transaction is also important to good internal control.

 Although the specific steps may vary between companies, depending on the size and type of company, some general rules can help you develop your own system.

 The steps involved in the sale of merchandise would include acceptance of the order, assembling, packing and shipment of the order, and billing and collection of the sales price.

 

Задание 7.Найдите в тексте предложения, в которых сказуемое выражено глаголом в одном из времен группы Progressive. Укажите инфинитив.

Задание 8. Найдите в тексте предложения с инфинитивом, укажите функцию инфинитива в предложении.