Internal Control In Accounting

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The organization 's history can be traced through the names of its principal founding members - whose initials form the name "KPMG." The history started in 1870 when William Barclay Peat joined an accounting firm and took it over. In 1917 Piet Klynveld opened his accounting firm in Amsterdam. In 1925, William Barclay Peat & Co. and Marwick Mitchell & Co. (a firm founded by James Marwick and Roger Mitchell in New York), merged to form Peat Marwick Mitchell & Company (later known simply as Peat Marwick). In 1979 Klynveld Kraayenhof & Co. (Netherlands), McLintock Main Lafrentz (United Kingdom / United States) and Deutsche Treuhandgesellschaft (Germany) formed KMG (Klynveld Main Goerdeler) as a grouping of independent national practices…show more content…
About internal control The process of internal control is designed to ensure that the objectives of an organization are achieved. There are several categories in which those objectives must be met for a good activity in a company: • Effectiveness and efficiency of operations • Reliability of financial reporting • Compliance with applicable laws and regulations Internal control is, to some stage , everyone 's obligation . Generally, administrative employees at the department-level are primarily responsible for internal control in their department . Internal control keeps an organization on course toward its objectives and the achievement of its mission, and minimizes unexpected events along the way. Internal control purpose is related to effectiveness and efficiency of activities, reduces the risk of losing assets, and helps to ensure compliance with laws and regulations. Internal control also ensures that the financial reports are reliable. To have effective internal control it is necessary that all the components be present and took into consideration when performing activities. About integrity and ethical…show more content…
From personal experience I know that when a new person is hired, and each year thereafter, he/she is asked to confirm in writing that he/she has read the Code , understood it and agrees with the core values, the responsibilities, the commitments and promises. The Romanian company attaches a great importance to this standard. I took part in an internship program and in the first two days of induction, the Code of Conduct was the main topic. They have introduced the new interns in the core of the company by providing a training related to ethics and integrity. Also, in 30 working days we had to perform a short test. Firstly, we had to read an online training about this topic, and then answer 10 questions related to it. The test was compulsory for each new member. It was took into consideration when evaluating the employees. I should also mention that this type of tests were also compulsory for other standards, especially for risk assessment because we talk about a consultancy company and risk is an important tool. Also, in this type of company it is important to respect the Code of Conduct because respecting it assures public
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