Accounting Control

What Does Accounting Control Mean?
Methods and procedures that are implemented by a firm to help ensure the validity and accuracy of its own financial statements. The accounting controls do not ensure compliance with laws and regulations, but rather are designed to help a company comply.

Investopedia explains Accounting Control
An example of an accounting control would be limiting management’s involvement in the preparation of financial statements. Sometimes it is helpful for management to be involved, since they generally know the company better than anyone. But final say on numbers should be in the hands of an accountant, because management may have incentive to distort numbers to inflate the company's performance.

Related Terms

Accounting
Accounting Equation
Audit Department
Audit Department
Cost Accounting
Financial Accounting
More Related Terms

Related Links

The Rise Of The Modern-Day Bean Counter - Follow accounting from its roots in ancient times to the profession we now depend on.
Accounting And Taxes, Like Peanut Butter And Jelly - Find out how these two have grown hand-in-hand throughout our modern history.
International Reporting Standards Gain Global Recognition - Comparing financial numbers from corporations in different countries is possible with the adoption of IFRS.
Shopping For An Accounting Certification - An accounting certification may just the boost your career needs. Find out how to get the most bang for your buck.
Understanding Pro-Forma Earnings - These figures can either shed light on a company's performance or skew it. Find out why.
Common Clues Of Financial Statement Manipulation - Search for the "bloody" fingerprints in accounting crimes.

Rate this Term: Your Rating: Overall Rating: Vote Now!