System of ‘Internal Control (I.C).
CHAPTER ONE
INTRODUCTON
In every well-organized concern there exists a large number of ways and means where a check is imposed on the accuracy of the executive work. These ways and means are called the system of ‘internal control (I.C).’ (D.P. Jain, 1993). Management not the auditor must establish and maintain the entity’s of control. (Alvin J., James K., W. Morley, Ingrid B., 2000). According to Spicer and Pegler, “internal control is best regarded as indicating the whole system of controls, financial and otherwise estimated by the management in the conduct of a business including internal check, internal audit and other form of controls.” (D.P. Jain, 1993). Larry F. (2002) defines internal control as the process affected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives. Internal control addresses the achievement of objectives in the areas of financial reporting, operations and compliance with laws and regulations.
Investopedia explains financial performance as a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm 's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. There are many different ways to measure financial performance, but all measures should be taken in aggregation. Line items such as revenue from operations, operating income or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt. (Investopedia, 2009)
1.0 Background of the study
Bamburi Cement Ltd. was founded in 1951 by Felix Mandl - a director of Cementia Holding A.G. Zurich. Cementia later went into partnership
INTRODUCTON
In every well-organized concern there exists a large number of ways and means where a check is imposed on the accuracy of the executive work. These ways and means are called the system of ‘internal control (I.C).’ (D.P. Jain, 1993). Management not the auditor must establish and maintain the entity’s of control. (Alvin J., James K., W. Morley, Ingrid B., 2000). According to Spicer and Pegler, “internal control is best regarded as indicating the whole system of controls, financial and otherwise estimated by the management in the conduct of a business including internal check, internal audit and other form of controls.” (D.P. Jain, 1993). Larry F. (2002) defines internal control as the process affected by an entity’s board of directors, management and other personnel designed to provide reasonable assurance regarding the achievement of objectives. Internal control addresses the achievement of objectives in the areas of financial reporting, operations and compliance with laws and regulations.
Investopedia explains financial performance as a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm 's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. There are many different ways to measure financial performance, but all measures should be taken in aggregation. Line items such as revenue from operations, operating income or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt. (Investopedia, 2009)
1.0 Background of the study
Bamburi Cement Ltd. was founded in 1951 by Felix Mandl - a director of Cementia Holding A.G. Zurich. Cementia later went into partnership
References: Alvin, J. Arens, James, K. Loobbecke., Marley, w. Lemon., Ingrid, B. Splettstoresser. (2000). Auditing and other Assurance Services (8th Edition). Prentice Hall: Canada. Carl, S. Warren, James, M. Reeve & Philip, E. Fess. (1999). Accounting (19th Edition). South-Western Publishing Collage: Cincinnati. David, N. Ricchiute (1988). Auditing: Concepts and Standards (2nd Edition). South-Western Purchasing Company: West Chicago. D.P., Jain. (1993). Auditing (1st Edition). Konark Publishers PVT LTD: Delhi Larry, F Larson, M. (1988). Financial Accounting, a studying manual. Ray,O. Whittington & Kurt Pany (2001). Principles of Auditing and other Assurance Services (13th Edition). Irwin McGraw-Hill: Boston Robbert, W Woolf, E. (1985). Auditing Today. Prentice Hall International Publishers: United Kingdom http://www.aicpa.org/audcommctr/toolkitsnpo/internal_control.html