What the differences of these ??

Home Forums ACCA Forums P1 Governance, Risk & Ethics Forums What the differences of these ??

This topic contains 2 replies, has 2 voices, and was last updated by avatar ahtasham 3 years, 2 months ago.

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author

  • avatar

    Internal control vs control system
    Board vs Management


    first answer
    Internal control is a system by which an organisation should work as its should work.
    what does this mean?its Mean that organisation should have controls for its operation to run smoothly and efficiently ,org without internal control cannot achieve its organisational targets and cannot get required result if no internal controls are there ,its a common sense that org consists large structure and many people level’s(hierarchy),therefore it is needed for org to have internal controls .Major corporate scandal have occurred because poor internal controls one of the famous scandal is Enron

    2nd Answer:
    you can understand this terminology as control system is a system that has been placed by the org to control its operation and run company in an effective manner

    Example of above questions
    Co has an issue with a good supplied by supplier that goods do not match with the quantity that ordered by company
    now consider your question ,Some one came to company and suggest that it should have a INTERNAL CONTROL SYSTEM for checking and confirming the good supplied by Supplier and simultaniously he suggest a CONTROL SYSTEM that Co. should prepare a Good Receiving Note(GRN) for Ensuring quantity that ordered.

    this is very simple illustration,I hope you will understand


    Although there is no much difference but for your undersatnding
    Board Or Board Of Directors are that direction who sit on board and make strategic decisions for co ,Monitor performance ,Evaluate performance etc and who involve in implementing the strategies that made by the board and they are Executive directors who are involved in day to day running of the co,they also monitor performance but operational performance .

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.