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Internal Control Disadvantages

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OBJECTIVE
All company needs to have an appropriate and effective internal control environment to ensure that the company is managed and controlled in a sound and practical manner.
The internal control environment system is recognize as the main cause of the business.The presence of smooth internal control environment is necessary for well achieving the business objectives.According to O’Leary et al (2006) an adequate system of internal control is considered as critical to good corporate governance.
Organization need effective controls in operating performance directions and increase revenues.Internal controls also help firms prevent operating losses resulting from noncompliance with law and regulations.
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• Internal controls help to ensure that an institution or business entitiy is in compliance with the laws and regulations affecting the operations of our business.
• Internal controls provide an environment in which managers are able to meet their targets and the efficiency and effectiveness of their operations.
• Internal controls system provides a procedure for management to monitor the achievement of operational goals and objective.

A company's internal control environment consists of all corporate policies and top leadership's directives to which personnel must adapt when performing tasks. An internal control is a set of measures that department heads put into place to prevent operating losses arising from unfavorable actions, such as fines and lawsuits, technological malfunction, error and fraud.

Responsibility Administrative management is the responsibility of management and is responsible for maintaining a high standard of internal control. Management is responsible for performance of duties of staff as part of a control environment. They are also responsible for assuring that the other major areas of internal control principles are
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By performing a periodic assessment, management assures that internal control activities have not become outdated or lost due to costs or other factors.

Internal Control Activities and Best Practices
Internal control activities are the policies and procedures as well as the daily activities that occur within an internal control system. A good internal control system should include the control activities listed below.
1. Preventive: Preventive control activities aim to deter the instance of errors or fraud. Preventive activities include thorough documentation and authorization practices. Preventive control activities prevent unwanted "activities" from happening, thus require well thought out processes and risk identification.
2. Detective: Detective control activities identify undesirable "occurrences" after the fact. The most obvious detective control activity is
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