REVIEW OF INTERNAL CONTROL :
Internal Controls are to be an integral part of any organization’s financial and business policies and procedures. Internal controls consists of all the measures taken by the organization for the purpose of; (1) protecting its resources against waste, fraud, and inefficiency; (2) ensuring accuracy and reliability in accounting and operating data; (3) securing compliance with the policies of the organization; and (4) evaluating the level of performance in all organizational units of the organization. Internal controls are simply good business practices.
Review of internal control system is a very important task for an auditor. It is required to ensure that any inefficiency or ineffectiveness in system is captured. A statutory auditor us also required to evaluate the effectiveness of internal control system and to state in his report to shareholders.