– Ensures efficiency in business operations. E.g. There will be procedures laying out the procedures to be followed in procuring raw materials
– Ensures adherence to management policies
– Ensures business objectives are realised.
– Safeguards the company’s assets
– ICS help in ensuring completeness and accuracy of the records maintained
– Strong internal controls help in preventing and detecting errors and frauds.
– For the auditor a good system justifies a reduction in the level of substantive testing but does not eliminate it fully.
