Page 252 - Microsoft Word - 00 ACCA F1 Notes Prelims.docx

Chapter 16

The purpose of internal control

2.1 The purpose of internal control

The purpose of internal control is implied by the definition given earlier, to help
management achieve the entity’s objectives, especially in terms of ensuring:

 the orderly and efficient conduct of the business

 the safeguarding of assets

 the prevention and detection of fraud and error

 the accuracy and completeness of the accounting records, and

 the timely preparation of reliable financial information.

246