Answer to Question #79421 in Finance for Hugh Heron

Question

How are internal controls enhanced by the documentation of procedures?

Answer 1

Documentation of procedures plays a vital role in enhancing the internal control of a given organization. The structure of the internal control, transactions, and the other significant events within the organization are to be documented and made reliable for it to be examined by the recommended individuals. These are achieved by carrying out a timely and proper recording of events and transactions that are classified in an accurate manner Another point is that duties should be separated among individuals.
Essential duties and responsibilities in recording, authorizing, dispensing, and reviewing the business events should be separated among the specialist.
Accountability of business resources and the records should also be accessed. Only individuals entitled to access the resources and records are to be accountable for their custody.