On the internal control of mandating companies with the stress on effectiveness and efficiency factors
| Autor: | Vahideh Tabibi Rad, Khadijeh Ghasemi |
|---|---|
| Rok vydání: | 2013 |
| Předmět: | |
| Zdroj: | IOSR Journal of Business and Management. 9:59-65 |
| ISSN: | 2278-487X 2319-7668 |
| DOI: | 10.9790/487x-0955965 |
| Popis: | Many people regard the term "Internal Control" as a measure taken by the business unit to prevent from the employees' fraud. However, such measures constitute a very small part of internal controls. The main purpose of internal controls is improving the efficiency and the effectiveness of the business units operations. Internal controls include the plans required for development, evaluation and distribution of reports by different levels of supervision, the analysis of which enables the managers to keep their controls over types of activities done in large business units. Internal control is not confined to accounting and finance, but using budgeting methods, production standards, lab inspections, time- measuring and movement - measuring of engineers and technicians, too, are in a part of a mechanism being regarded as internal control. In this study, we have tried to analyze the internal control status of manufacturing companies of Kaveh Industrial Town, stressing on effectiveness and efficiency factors. Based on this study, the main objectives of internal controls are as follows: 1. Effectiveness and efficiency of operation, 2. Reliability of the financial reporting, 3. Following operational laws and regulations. The present study is a surveying investigation and a questionnaire in- writing has been used to collect data. Two main questions have been raised in this study: Do manufacturing companies appropriately use internal controls? And do internal controls relate to features such as education level, the field of study and the work record of the financial manager as well as the type and the side of the Co.? The findings of the study show that at the present, the manufacturing companies are mostly poor in establishment of standards and application of appropriate instructions. Also, many of them have had poor performance in establishment of functions such as responsiveness to customers, research and development, etc. Also, among the criteria, only a correlation exists between the field of study and educational level on the one hand and internal control, on the other hand |
| Databáze: | OpenAIRE |
| Externí odkaz: |
|