Internal Control and Statutory Compliance Statutory Compliance (Internal) All the organization concentrating on Statutory Compliance since it is a Mandatory requirement as per different Acts. As mentioned in my earlier post, the proper system to be in place for a real control over statutory obligations. But , there is a requirement of Internal Control mechanism also required for the purpose of the smooth running of organisation. From my 30 plus years of experience , I found this tracking of internal compliance is not given much importance. I give below one of Internal Compliance system :- Issue of Bank Guarantee : Bank guarantee can be issued to different government organisation and also to the customers . The initiator of the BG is the Sales/Marketing Department in case of BG to be issued to the Customer.. The responsibility of the BG creation is Finance Department. Most of the companies , the finance department will maintain the...
Posts
Internal Control and Statutory Compliance
Internal Control For Any Organization growth, proper implementation the Internal Control is more crucial. Internal Control Starts with Top management and should communicate to the last level of employees/workers and they should get the feedback from them. Internal control refers to the processes, policies, and procedures put in place within an organization to safeguard its assets, ensure accuracy in financial reporting, and promote operational efficiency. Here are some brief notes about internal control: Purpose : Internal control is implemented to achieve several key objectives, including safeguarding assets, ensuring financial statement accuracy, and promoting operational efficiency and effectiveness. Components : Internal control consists of five main components: Control Environment: The tone set by management and the organization's culture, which influences the effectiveness of internal control. Risk Assessmen...