How do Internal Controls in Computer-based Systems Differ from Manual Ones?

Internal Controls in Computer based Systems must be evaluated at regular intervals of time.

What are Internal Controls?

The Internal controls of a company refer to a number of rules and regulations put in place to ensure that all accounting and financial tasks take place diligently. Money is one of the most important assets a company can have, so it is extremely important to prove the integrity of the processes and people dealing with handling it. Implementing internal control not only protects the company's physical assets, but also the intangible ones like its goodwill, trade secrets, and other intellectual property. Internal Control also includes the allocation and supervision of the employees. This plays a vital role in the Internal Audit Programme. It includes checking whether the work is segregated properly among the subordinates and whether they are able to perform the task well. The managers and superiors in the company usually conduct Internal checks. This is to ensure that the employees are handling the work smoothly. Auditors use a variety of methods and tools to determine if these controls in fact stand up to how they must ideally operate. They must make sure that the people in charge of these controls have a full understanding of their duties, and are able to satisfactorily detect any errors in controls.

Advantages of Computerizing a Company's Operations

With the constant rise in technology, many companies are automating a lot of their procedures. This includes substituting paperwork with computer files and developing applications and

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