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Internal controls are measures put in place to to avoid fraudulent practices by employees and management as well.
These measures are better when done properly and by an expert in the field of management, accounting and business in general.
When these measures are not properly done or monitored it can lead to fraud which may in turn lead to bankruptcy of a firm.
Some of these weaknesses in that can be found in Internal Control are as follows:
1. name of the preparer was not referenced on the journal entry forms
2. Lack of proper supporting documentation in journal entries
3. Lack of proper review and approval: not have effective processes to ensure that all journal entries were properly reviewed and approved prior to posting to the general ledger.
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