Internal control
In one sentenceThe set of policies and procedures management puts in place to protect assets, ensure accurate financial records, comply with regulations and work efficiently.
Simply put
Internal control is everything that prevents errors or detects them early: defined permissions, approvals before payment, regular reconciliations and physical counts.
The stronger the controls, the lower the chance of errors and fraud, and the less detailed testing the auditor needs to do.
Example
An auto parts store reconciles the bank balance in its books with the bank statement every month, and no amount above a set limit is paid without two signatures: these are two internal controls.
in FullScreen ERP
The system offers detailed permissions at the level of each screen and operation for every user. Users, branches, and permissions