What are the principles of good control system

Ensure that board exercises oversight responsibility.In other words, these are the principles management uses to establish the ways to protect company assets.The system's design is about the structure of your management control system.Safeguarding assets against theft and unauthorized use, acquisition, or disposal is also part of internal control.Demonstrate commitment to integrity and ethical values.Planning and control are closely connected to each other.

Internal control is based on the following principles:A good system, however, is always simple to comprehend and work on.Acceptance by members of the organisation 4.Focus on critical activities 5.For example, a high security system to safeguard nuclear secrets may be justified but the same system to safeguard office supplies in a store would not be economically justified.These principles also help to protect and safeguard the organization, its assets, liabilities, resources, etc.

Internal control should provide for a well designed accounting system.9) control must be simple to understand.Any control system should be designed to maintain direct contact between the controller and controlled.Integrity and ethical values, management philosophy and operating style, and assignment of authority and responsibility fall under the control environment umbrella.