Financial Control
Financial Control
The methods and procedures implemented to guarantee that an organization’s financial activities are carried out in an accurate, secure, and efficient manner are referred to as financial control.
To manage financial risks, guarantee legal and regulatory compliance, and advance accountability and transparency, financial control incorporates the application of policies, processes, and internal controls.
Financial Reporting's Function in Business
Statements of financial status, including cash flow, income, and balance sheets, are prepared and presented as part of financial reporting. Increased accountability, transparency, and decision-making are some advantages of financial reporting.
Auditing involves the examination and evaluation of an organization’s financial statements and internal controls. Auditing helps to ensure compliance with financial reporting standards and regulations, and provides assurance that financial statements are accurate and reliable.
Poor financial control can lead to financial losses, fraud, and non-compliance with laws and regulations. It can also damage an organization’s reputation and erode stakeholder trust.