ADVANTAGES OF INTERNAL CONTROL SYSTEM :

Increase in operational efficiency
One advantage of internal controls involves the efficiency they create. Technological advances to improve the
accuracy of each transaction also streamline manual processes.

Accurate Recording
Another advantage of internal controls revolves around the accuracy in recording each transaction. Internal controls help prevent errors and irregularities from occurring. If errors or irregularities do occur, internal

controls

will help ensure they are detected in a timely manner. It creates confidence that only authorized transactions
have taken place

Safeguarding Assets

It minimizes of the risk of fraud and misappropriation of assets. It involves fraud monitoring and prevention techniques. For example in case of a banking internal control system, mmonitoring activities include security cameras and security guards and prevention activities include cash counting by two employees at a time and cash reconciliation by non-tellers..

Compliance
Another advantage of using internal controls includes increasing compliance with regulatory agencies. Internal
controls encourage adherence to prescribed policies and procedures. It assures that adequate documentation
supporting transactions is created and retained.

Protection of Employees
Internal controls protect employees: 1) by clearly outlining tasks and responsibilities, 2) by providing checks and balances, and, 3) from being accused of misappropriations, errors or irregularities

Benefits of Internal Control to the Auditor
I f the audit client benefits from a sound system of internal control, it is likely that the auditor will also be benefited. All of the above stated benefits help to promote a situation where the financial statements present a true and fair view. A good system of internal control will make life easier for the auditor