An effective internal control system is crucial for modern
businesses. Factors such as business growth, the complexity of
activities, and the potential for errors and fraudulent
transactions make it essential. Without an effective internal
control system, it is difficult for business managers to oversee
and manage business activities.
The internal control structure consists of the control
environment, the accounting system, policies, procedures, and rules
established by senior management. These are called control
activities and are designed to achieve the financial and
operational objectives of the company, providing reasonable
assurance on these issues.
On the other hand, top management decision-making involves the
strategic choices made by senior executives and board members,
shaping the direction and future of the organization. These
decisions can significantly impact the organization's
performance, reputation, and overall success. Therefore, it is
essential
