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Aamer Allauddin
Listing Regulation
The terms of reference of the Audit
Committee shall also include the following:
ascertaining that the internal control
system including financial and operational
controls, accounting system and reporting
structure are adequate and effective;
review of the listed companys statement
on internal control systems prior to
endorsement by the Board of Directors;
(The Listing Regulations of the Karachi Stock Exchange)
Types of controls
Internal controls are normally divided into three categories for
the purpose of corporate governance:
Financial controls
Compliance controls (to ensure compliance with laws and regulations)
operational controls.
Control activities
Control activities are the policies and
procedures, other than the control
environment, used to ensure that the entitys
objectives are achieved. They are the
application of internal controls.
Control activities are the specific procedures
designed:
to prevent errors that may arise in processing
information, or
to detect and correct errors that may arise in
processing information.
Monitoring of controls
It is important within an internal
control system that management
should review and monitor the
operation of the controls, on a
systematic basis, to satisfy
themselves that the controls remain
adequate and that they are being
applied properly
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