Saturday, July 24, 2010

Internal Control: The Missing Point

Unfortunately, executive management  lacks the adequate and proper understanding of the nature and importance of the internal control systems for not only the strategy formulation, but also for the strategy execution and feedback.

Does this phenomenon put the entity run by this kind of executives at risk? Definitely yes.

As any entity needs a minimum structure of  internal control systems, the absence of such systems expose the entity for too many serious business matters such as fraud and corruption.

 

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