Accounting Control

Accounting control are the methods and practices that are implemented by an organization or a business entity to help in ensuring the validity and the authenticity of their own financial statements that are issued by the business. The accounting controls are a sort of internal controls and are not introduced in order to act as a compliance of government rules, laws and regulations regarding the accounting principles and statements of the business. Instead these controls are implemented by the business entity to ensure internal compliance. These controls are designed to help the organization so that it can compile error free, accurate and trusted financial statements.

For example an accounting control can be introduced by the organization while preparing the financial statements that managers will not be involve during the preparation of the financial statements of the business. Business can ask the managers to limit their roles while preparing the financial statements of the business. Sometimes it is recommended to involve managers while preparing the financial statements as managers know their companies at their best however this involvement must be limited and must not wrong influence of the managers while preparing the financial statements. A business must introduce accounting controls where the numbers are not going to be in the hand of the accountants. The major objective of accounting controls is that no manager or other employees have such authority in hands so that they could not manipulate the numbers to inflate the performance of the company and business.

Other Related Accounting Articles:

• Over and Short
• Absolute Performance Standard
• Limitations of Financial Accounting
• Operating Income before Depreciation and Amortization OIBDA
• Accounting Valuation Process
• Unrestricted Cash
• Basic Accounting Terminologies
• Over leveraged
• Accounting Conventions
• Accounting Postulates