Can Anyone Explain Internal Control Method For Small Scale Business?

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Can Anyone Explain Internal Control Method For Small Scale Business?

2 Answers

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Answer 1

Without a well-conceived business strategy, the value of a business may not be emphasised properly and exit options can become limited. The range of business strategies to be considered can include a straightforward sale of a business, to more intricate transfers of ownership such as an employee or management buyout. Joint ventures and strategic alliances, or streamlined sales of assets can also be evaluated. Many issues have to be addressed in order to maximise a business’s value, including business, economic, personal, interpersonal and cultural aspects. No two business owners will weigh these issues alike; the choice of an exit strategy must be based on the individual owner’s assessment of the importance of each issue.

Answer 2

For small scale business check list method is used. The minimum check list is a list of questions like internal control questionnaires to record the systems information relating to small business concern. When the size of the entity is small of the business may require more managers. The nature of work may relate to manufacture, trade or service. In case of manufacture raw material is processed to make final product.

The trade is concerned with exchange of finished or semi finished goods. The service business can provide service only.The auditor must know the nature of activities carried on by the business management. The list of managerial staff may be collected. He can design the questions relating to the nature of work. The list of staff may be collected be collected. Ha can prepare questions to collect the whole information. He can note the various controls operating in the business.

He can note the weakness in the system. The important is given to supervision in small scale business. The involvement of manager in day to day operations can compensate the necessity of many controls applicable in large business. Therefore minimum control check list developed to evaluate the working of business.