内部控制外文翻译.docx

内部控制外文翻译.docx

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内部控制外文翻译

河北大学毕业论文（设计）

外文翻译

原文来源：

ResearchPaper,July2009,

SocialScienceResearch

Network

中文译文：

内部控制透视：

理论与概念

学院

专业

姓名

学号

指导教师

年月日

AClearLookatInternalControls:

TheoryandConcepts

HammedArad（Philae）

Departmentofaccounting,IslamicAzadUniversity,Hamadan,Iran

BarakJamshedy-Navid

FacultyMemberofIslamicAzadUniversity,Kerman-shah,Iran

Abstract:

internalcontrolisanaccountingprocedureorsystemdesignedtopromoteefficiencyorassuretheimplementationofapolicyorsafeguardassetsoravoidfraudanderror.InternalControlisamajorpartofmanaginganorganization.Itcomprisestheplans,methods,andproceduresusedtomeetmissions,goals,andobjectivesand,indoingso,supportperformance-basedmanagement.InternalControlwhichisequalwithmanagementcontrolhelpsmanagersachievedesiredresultsthrougheffectivestewardshipofresources.Internalcontrolsshouldreducetherisksassociatedwithundetectederrorsorirregularities,butdesigningandestablishingeffectiveinternalcontrolsisnotasimpletaskandcannotbeaccomplishedthroughashortsetofquickfixes.Inthispapertheconceptsofinternalcontrolsanddifferentaspectsofinternalcontrolsarediscussed.

Keywords:

InternalControl,managementcontrols,ControlEnvironment,ControlActivities,Monitoring

1.Introduction

Thenecessityofcontrolinnewvariablebusinessenvironmentisnotlatentforanypersonandmanagementasaresponsefactorforstockholdersandanothershouldimplementagreatcontroloverhis/herorganization.Controlistheactivityofmanagingorexertingcontroloversomething.heemergenceanddevelopmentofsystematicthoughtsinrecentdecaderequiredanewattentiontobusinessresourceandcontroloverthiswealth.Oneofthehottopicaboutcontrolsoverbusinessresourceisanalyzingthecost-benefitofeachcontrol.

InternalControlsserveasthefirstlineofdefenseinsafeguardingassetsandpreventinganddetectingerrorsandfraud.WecansayInternalcontrolisawholesystemofcontrolsfinancialandotherwise,establishedbythemanagementforthesmoothrunningofbusiness;itincludesinternalcheek,internalauditandotherformsofcontrols.

COSOdescribeInternalControlasfollow.Internalcontrolsarethemethodsemployedtohelpensuretheachievementofanobjective.Inaccountingandorganizationaltheory,Internalcontrolisdefinedasaprocesseffectedbyanorganization'sstructure,workandauthorityflows,peopleandmanagementinformationsystems,designedtohelptheorganizationaccomplishspecificgoalsorobjectives.Itisameansbywhichanorganization'sresourcesaredirected,monitored,andmeasured.Itplaysanimportantroleinpreventinganddetectingfraudandprotectingtheorganization'sresources,bothphysical（e.g.,machineryandproperty）andintangible（e.g.,reputationorintellectualpropertysuchastrademarks）.Attheorganizationallevel,internalcontrolobjectivesrelatetothereliabilityoffinancialreporting,timelyfeedbackontheachievementofoperationalorstrategicgoals,andcompliancewithlawsandregulations.Atthespecifictransactionlevel,internalcontrolreferstotheactionstakentoachieveaspecificobjective（e.g.,howtoensuretheorganization'spaymentstothirdpartiesareforvalidservicesrendered.）Internalcontrolproceduresreduceprocessvariation,leadingtomorepredictableoutcomes.Internalcontrolswithinbusinessentitiesarecalledalsobusinesscontrols.Theyaretoolsusedbymanager'severyday.

*Writingprocedurestoencouragecompliance,lockingyourofficetodiscouragetheft,andreviewingyourmonthlystatementofaccounttoverifytransactionsarecommoninternalcontrolsemployedtoachievespecificobjectives.

Allmanagersuseinternalcontrolstohelpassurethattheirunitsoperateaccordingtoplan,andthemethodstheyuse--policies,procedures,organizationaldesign,andphysicalbarriers-constitute.Internalcontrolisacombinationofthefollowing：

1.Financialcontrols,and

2.Othercontrols

AccordingtotheinstituteofcharteredaccountantsofIndiainternalcontrolistheplanoforganizationandallthemethodsandproceduresadoptedbythemanagementofanentitytoassistinachievingmanagementobjectiveofensuringasfaraspossibletheorderlyandefficientconductofitsbusinessincludingadherencetomanagementpolicies,thesafeguardingofassetspreventionanddetectionoffraudsanderrortheaccuracyandcompletenessoftheaccountingrecordsandtimelypreparationofreliablefinancialinformation,thesystemofinternalcontrolextendsbeyondthosematterswhichrelatetothefunctionofaccountingsystem.Inotherwordsinternalcontrolsystemofcontrolslaydownbythemanagementforthesmoothrunningofthebusinessfortheaccomplishmentofitsobjects.Thesecontrolscanbedividedintwopartsi.e.financialcontrolandothercontrols.

Financialcontrols:

-Controlsforrecordingaccountingtransactionsproperly.

-Controlsforpropersafeguardingcompanyassetslikecashstockbankdebtoretc

-Earlydetectionandpreventionoferrorsandfrauds.

-ProperlyandtimelypreparationoffinancialrecordsIebalancesheetandprofitandlossaccount.

-Tomaximizeprofitandminimizecost.

Othercontrols:

Othercontrolsincludethefollowing:

Qualitycontrols.

Controloverrawmaterials.

Controloverfinishedproducts.

Marketingcontrol,etc

6.Partiesresponsibleforandaffectedbyinternalcontrol

Whileallofanorganization'speopleareanintegralpartofinternalcontrol,certainpartiesmeritspecialmention.Theseincludemanagement,theboardofdirectors（includingtheauditcommittee）,internalauditors,andexternalauditors.

Theprimaryresponsibilityforthedevelopmentandmaintenanceofinternalcontrolrestswithanorganization'smanagement.Withincreasedsignificanceplacedonthecontrolenvironment,thefocusofinternalcontrolhaschangedfrompoliciesandprocedurestoanoverridingphilosophyandoperatingstylewithintheorganization.Emphasisontheseintangibleaspectshighlightstheimportanceoftopmanagement'sinvolvementintheinternalcontrolsystem.Ifinternalcontrolisnotapriorityformanagement,thenitwillnotbeoneforpeoplewithintheorganizationeither.

Asanindicationofmanagement'sresponsibility,topmanagementatapubliclyownedorganizationwillincludeintheorganization'sannualfinancialreporttotheshareholdersastatementindicatingthatmanagementhasestablishedasystemofinternalcontrolthatmanagementbelievesiseffective.Thestatementmayalsoprovidespecificdetailsabouttheorganization'sinternalcontrolsystem.

Internalcontrolmustbeevaluatedinordertoprovidemanagementwithsomeassuranceregardingitseffectiveness.Internalcontrolevaluationinvolveseverythingmanagementdoestocontroltheorganizationintheefforttoachieveitsobjectives.Internalcontrolwouldbejudgedaseffectiveifitscomponentsarepresentandfunctioneffectivelyforoperations,financialreporting,andcompliance.heboardsofdirectorsanditsauditcommitteehaveresponsibilityformakingsuretheinternalcontrolsystemwithintheorganizationisadequate.Thisresponsibilityincludesdeterminingtheextenttowhichinternalcontrolsareevaluated.Twopartiesinvolvedintheevaluationofinternalcontrolaretheorganization'sinternalauditorsandtheirexternalauditors.

Internalauditors'responsibilitiestypicallyincludeensuringtheadequacyofthesystemofinternalcontrol,thereliabilityofdata,andtheefficientuseoftheorganization'sresources.Internalauditorsidentifycontrolproblemsanddevelopsolutionsforimprovingandstrengtheninginternalcontrols.Internalauditorsareconcernedwiththeentirerangeofanorganization'sinternalcontrols,includingoperational,financial,andcompliancecontrols.

Internalcontrolwillalsobeevaluatedbytheexternalauditors.Externalauditorsassesstheeffectivenessofinternalcontrolwithinanorganizationtoplanthefinancialstatementaudit.Incontrasttointernalauditors,externalauditorsfocusprimarilyoncontrolsthataffectfinancialreporting.Externalauditorshavearesponsibilitytoreportinternalcontrolweaknesses（aswellasreportableconditionsaboutinternalcontrol）totheauditcommitteeoftheboardofdirectors.

8.LimitationsofanEntity'sInternalControl

Internalcontrol,nomatterhowwelldesignedandoperated,canprovideonlyreasonableassuranceofachievinganentity'scontrolobjectives.Thelikelihoodofachievementisaffectedbylimitationsinherenttointernalcontrol.Theseincludetherealitiesthathumanjudgmentindecision-makingcanbefaultyandthatbreakdownsininternalcontrolcanoccurbecauseofhumanfailuressuchassimpleerrorsormistakes.Forexample,errorsmayoccurindesigning,

Maintaining,ormonitoringautomatedcontrols.Ifanentity’sITpersonneldonotcompletelyunderstandhowanorderentrysystemprocessessalestransactions,theymayerroneouslydesignchangestothesystemtoprocesssalesforanewlineofproducts.Ontheotherhand,suchchangesmaybecorrectlydesignedbutmisunderstoodbyindividualswhotranslatethedesignintoprogramcode.ErrorsalsomayoccurintheuseofinformationproducedbyIT.Forexample,automatedcontrolsmaybedesignedtoreporttransactionsoveraspecifieddollarlimitformanagementreview,butindividualsresponsibleforconductingthereviewmaynotunderstandthepurposeofsuchreportsand,accordingly,mayfailtoreviewthemorinvestigateunusualitems.

Additionally,controls,whethermanualorautomated,canbecircumventedbythecollusionoftwoormorepeopleorinappropria