Justification for an Internal Control System

In: Business and Management

Submitted By sgorham925
Words 911
Pages 4
Internal Control Systems are very important for the risk management department of a company. This system helps keep the company protected from losing assets or incorrect use of assets. They also assist the company with keeping record and staying on track with objectives needed to be met. A controller’s duty would be to support management and the reporting of accounting and financial information. To start off, insurance and portfolios would complete the internal control system. Having a complete internal control system can further protect the company from risks.

The controller is or can be an employee who’s job title is mainly to be the backbone for management when dealing with accounting and financial records that deal with the controls of organizations and organizational goals. If the main focus of the controller is financial controls and the financial process, along with the internal control system in play, the more genuine the information that the controller provides will be.

Just having insurance does not guarantee that a company is protected from risks. Companies cannot ensure every risk. The insurance can cover things that happen to the company or facility and their equipment. Things that can be covered would be flooding, fires, or accidents that occur on their property. With insurance, the company is only expecting a small loss. A risk that is not protected by insurance would be a risk that can destroy the company’s reputation. It takes time to build a positive reputation in the business world, when just one event can destroy it.

In order for a portfolio to be done, we must understand the organization, their interactions and their future goals. The goals would deal with both their short term and long term goals. A lot of the understanding deals with being about to figure out where the company is going and how it should get there. The company’s…...

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