The 5 Levels of Controls in an Organization

In accounting, there are two levels of controls at the organizational level. The first one is internal control, which refers to all practices and procedures carried out in an organization to ensure that it achieves its set target and strategy. It further ensures that the organization utilizes its resources economically and uses reliable information to support every management decision. These controls are essential in helping an organization manage its risks and have custody of clients' assistance while making proper arrangements for the protection of properties. External controls are measures that directly or indirectly affect the company's operations but are put in place by external agencies like the government and other organizations. They come in the form of rules and regulations which affect how a company does its business. They include tax laws the government put in place, which impacts the flow of money and environmental conservation regulation, especially for companies releasing waste and other governmental and organizational restrictions. 

Fraud is an example of an economic crime that calls for internal and external controls to combat. In accounting, the act of fraud examination refers to the skills essential in resolving fraud allegations from the point of its inception to the point of disposition, to gather evidence, make statements and compile a report. All these must assist in testifying to the findings and providing necessary assistance in fraud detection and prevention. Fraud is an ever-present threat to the health of any business. The unnecessary and yet substantial occupational costs linked to work-related fraud affect the ability of any business to compete with others in the market fairly. The examination process commences when the allegations are received. An investigating team is then established, which conducts a preliminary assessment and collects evidence. It involves an analysis of financial records and interviewing the suspects. From all these, a report of findings is prepared and presented.