Financial Education | Accounting exercise as an instrument of internal control

in #financial2 years ago

The accounting and administrative exercise methods allow verifying the comparison of the balances shown in the statement of accounts and the current assets available.

Source ( optimiso-group )

In addition to this, management will depend on financial information to make effective decisions, correctly dispose of current assets to assume basic commitments depending on the commercial work.

In relation to the adjusted balances, it is understood as a structured record presented by an auditor to show the financial and accounting status in real times that the entity has.

This methodological process of reconciliation must include in the corresponding reconciliation: balances according to subsidiary ledgers, settlement errors, items not recorded in the books, debit and credit notes, bank account balances, deposits in transit, checks in transit, auditor's signatures.

Source ( equiposytalento )

It is necessary to establish this accounting and administrative record at the close of the accounting period as an instrument of internal control, as it makes it possible to disclose the reality and speed of financial data, operations, settlements, among others, with a positive impact on the management of the current assets available to the entity.

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