Accounting control is the manner in which processes are configured to manage risk within an organization. The targets of internal control are to:
- Guard against the loss of assets
- Ensure that financial statements represent fairly the financial results, position, and cash flows of a business
- Ensure that objectives are met in an effective and efficient manner
- Ensure that laws and regulations are followed
The system of accounting control may contain dozens or hundreds of separate control activities that are intended to work within the specific characteristics of a business. Thus, the accounting controls for a manufacturer are different from those of a distributor and retailer, even though all three firms may operate within the same industry.