Accounting controls generally comprise of different methods and procedures which are practiced in different business organizations to help them maintain valid and accurate financial statements and these are not compliant with laws and regulations but on the other hand, aims at helping a firm function in the most efficient manner for all stakeholders.

Explanation of Accounting Control

Accounting controls are made up of various levels of procedures and steps which are due diligently implemented by a business organization to maintain a set level of validity and accuracy of their income statements. Accounting controls are usually applied so that a firm can operate with the utmost efficiency and have proper controls in place. Adherence to law and regulations is not the ultimate aim of accounting controls but its main purpose is to support the company to be an appropriate one for its stakeholders. There are generally three main areas of accounting control which areas detective controls, preventive controls and corrective controls. The sole purpose of accounting control is to instill the belief of the shareholders on the company and support their interest. The three types of controls mentioned earlier play the role based in the scenario and the degree of concern. Detective and preventive controls are generally situations based whereas corrective controls are more of the after effects of detective control or the suggestive measure of detective control.