INTERNAL CONTROL

ESSENTIAL REQUISITES OF AN
EFFECTIVE INTERNAL CONTROL

1. THERE ARE AVAILABLE REPORTS OF THE

PAST, PRESENT AND THE FUTURE
A. Financial reports

i. Balance Sheet
ii.Income Statement
iii.Capital Statement
iv.Cash Flow Statement
v.Financial Ratios and Analysis

THERE ARE AVAILABLE REPORTS OF THE

PAST, PRESENT AND THE FUTURE
B. Present Sales, Expenses and Inventory Reports
i. Daily
ii. Weekly
iii.Monthly
iv.Quarterly
v. Annually
*Should be properly substantiated with appropriate
documents like deposit slips and receipts.

THERE ARE AVAILABLE REPORTS OF THE

PAST, PRESENT AND THE FUTURE
C. Projections
i. Sales and Expenses Projections
ii. Break-even Analysis
iii.Budgeting

2. SET AN EFFECTIVE GUIDELINES,

STANDARDS AND POLICIES FOR BOTH THE
OPERATION AND FINANCIAL PROCESSES.

2. EXISTING GUIDELINES, STANDARDS

AND POLICIES ARE CONSISTENTLY
MONITORED
A. COMPLIANCE REPORT
B. AUDIT REPORT

3. THE COMPANY VALUES THE FEEDBACK

OF CUSTOMERS AND EMPLOYEES
A. CUSTOMER SATISFACTION
REPORT
B. EMPLOYEE EVALUATION