1. Welcome To Our Presentation
Presented by Kings of IUBAT
Topic- Internal Control

2. College of Business Administration
Group Members
Name ID
Md. Saydur Rahman
Md. Motiur Rahman
Md. Nazrul Islam
Obaydul
Pulok Majumder
Prepared for
Mir Semon Haider
College of Business Administration

3. An Overview of Internal Control
Internal Control Defined
Internal Check
Types of Controls
Objectives of Internal Controls
Control Activities
Evaluative Criteria for Good Internal Check
Distinction between internal audit and statutory audit
Limitations of Internal Controls
Evaluation & Auditing Standards for Internal Control Over Financial Reports
Why Are Internal Controls Important in Financial Statements
Conclusion

4. Internal Control Defined
An entity’s system of internal control consists of policies and procedures designed to provide management with reasonable assurance that the company achieves its objectives and goals including:
Reliability of financial reporting
Compliance with applicable laws and regulations
Effectiveness and efficiency of operations

5. Internal Check
A division of duties that does not permit one individual to carry out all stages of a transaction. An internal check is intended to prevent fraud and minimize errors.

6. Types of Internal Controls:
Detective: Designed to detect errors or irregularities that may have occurred.
Corrective: Designed to correct errors or irregularities that have been detected.
Preventive: Designed to keep errors or irregularities from occurring in the first place.

7. Objectives of Internal Controls
Strategic – high-level goals and objectives, aligned with and supporting the mission.
Operational – effective and efficient use of resources.
Reporting – integrity and reliability of reporting.
Compliance – compliance with applicable laws and regulations.
Stewardship – protection and conservation of assets.

8. Evaluative Criteria for Good Internal Check
Division of work
Job Rotation
Authority Levels
Separation of Custody & Recording
Accounting Controls

9. Distinction between internal audit and statutory audit
1.Appointment
2. Legal Requirement
3. Qualification
4. Conducting Of Audit
5. Status
6. Scope Of Work
7. Removal
8. Remuneration
9.Report

10. Limitations of Internal Controls:
Judgment
Breakdowns
Management Override
Collusion

11. Why Are Internal Controls Important in Financial Statements
Errors and Omissions
Illegal Acts
Misappropriation of Assets
Fraud

12. Conclusion
Internal audit is a part of that system of control and has the opportunity to play an active role in helping ‘the tone at the top’. Internal controls are intended to prevent errors or irregularities, identify problems, and unsure that corrective action is taken. Internal audit methodology should be refined to support the relationship it’s seeking to have with the organization and, for this to work, it needs to have the right people with the right skills – competent, compassionate, commercial and, occasionally, courageous.

14. Short question: 1. What is internal control. 2. What is internal check
Short question: 1. What is internal control? 2. What is internal check? Broad question: 1. Evaluative Criteria for Good Internal Check? 2. What is Internal Audit? Distinction between Internal Audit and Statutory Audit?