Financial Education - Risks that may compromise the achievement of the business entity's objectives

One of the activities with the greatest administrative impact within the internal accounting and corporate control measures is to ensure the timeliness, clarity, usefulness, reliability of the information and records that support the management of the organisation, with the aim of correcting and preventing risks that could compromise the achievement of the objectives of the business entity.

Hence, from the above, accountancy graduates or rather accounting professionals will normally start the study of internal control before entering into the work of verification of operations, since the conclusions related to internal control will affect the extent of an examination.

However, the conclusion regarding all phases of internal control cannot be made until the auditor completes all phases of the examination, thereby enabling the assurance of the assets and speed of each financial process applied by the entity under review.

The exercise of internal control implies that it must follow the principles of equality, morality, efficiency, economy, speed, impartiality, publicity and valuation of environmental costs. In short, efficient internal control necessarily presupposes the existence of objectives and goals in the organisation.

If these are not adequately defined, the organisation will lack direction and, therefore, a frame of reference against which it can measure the results obtained. Therefore, in order to extend the conceptual definition of internal control, it is important to note the following characteristics that are involved in the management of measures for its application.